Vedanta doubles South Africa zinc capacity to 500,000 tonnes with $600 million investment

Vedanta Ltd has doubled its annual zinc production capacity in South Africa to 500,000 tonnes with an investment of nearly $600 million in the second phase of its Gamsberg project, the company said on Sunday. South African President Cyril Ramaphosa and Vedanta Ltd Director Priya Agarwal-Hebbar inaugurated the expanded capacity at Gamsberg in the Northern Cape province.

The expansion is part of Vedanta's broader plan to achieve annual zinc production of 3 million tonnes across India and South Africa. The company aims to produce 2 million tonnes annually through its subsidiary Hindustan Zinc Ltd, the world's largest integrated zinc producer, while Vedanta Zinc International targets an annual contribution of 1 million tonnes.

Gamsberg is the flagship zinc mine of Vedanta Zinc International and is located in South Africa's Northern Cape province. Vedanta described the expansion as one of the largest mining investments in South Africa this decade.


The investment is part of a commitment of 21 billion South African rand, or nearly $1.5 billion, made by Vedanta at the 2018 South Africa Investment Conference.

"We have come to celebrate an investment that has moved from commitment to construction, and from construction to production. We welcome Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape. Government must work with Vedanta and other partners to address their requirements," Ramaphosa said.

Zinc is used in galvanisation to protect steel from corrosion, with applications across construction, automotive and manufacturing industries. Vedanta said the expansion would strengthen its ability to serve growing global demand for the metal.

"For Vedanta, Gamsberg Phase II is more than an expansion of its zinc business. It is a commitment to South Africa’s future. My father, Vedanta founder and Chairman Anil Agarwal, made that commitment with the belief that the country’s mineral wealth could become a foundation for industrial growth, jobs and opportunity. Today, I am proud to see that vision coming to life. Our ambition is to build a globally significant zinc and industrial hub in the region., creating lasting value for the country and its people. The true measure of our success is not just what we produce, but the prosperity we help create for generations to come," Priya Agarwal-Hebbar said.

Vedanta also said it had invested nearly $20 million in community initiatives in South Africa since acquiring Vedanta Zinc International in 2011. The initiatives cover healthcare, education, sports, livelihoods, infrastructure and social welfare, and benefit more than 32,000 people annually. The company said Vedanta Zinc International opened an oncology centre in Namakwa earlier this year.