Vedanta Limited announced a significant expansion of its zinc production capacity in South Africa through a regulatory filing submitted to BSE Limited and National Stock Exchange of India Limited.
The company has doubled its annual zinc production capacity to 500,000 tonnes (metal-in-concentrate) at its South Africa zinc operations through an investment of nearly US$ 600 million at Gamsberg (Phase II) at Vedanta Zinc International (VZI). This expansion represents one of the largest mining investments in South Africa in this decade.
The expansion was inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar at the Gamsberg mine in South Africa's Northern Cape province, which contains one of the world's most significant zinc deposits.
This investment forms part of a larger ZAR 21 billion (nearly US$ 1.5 billion) investment commitment that Vedanta made at the 2018 South Africa Investment Conference.
The expansion advances Vedanta Limited's position as the world's largest zinc producer (refined metal, including MIC), with a vision of achieving 3 million tonnes of annual production across India and South Africa. This target includes:
- 2 million tonnes from its subsidiary Hindustan Zinc Limited (NSE: HINDZINC; BSE: 500188), the world's largest integrated zinc producer
- 1 million tonnes annually from Vedanta Zinc International business
Vedanta has invested nearly USD 20 million in community initiatives in South Africa since acquiring Vedanta Zinc International in 2011, focused on health, education, care centres, sport, livelihoods, infrastructure and social welfare. These initiatives benefit more than 32,000 people each year.
The press release contains forward-looking statements regarding expected future business and financial performance, with uncertainties arising from financial and metals markets behavior, exchange rate fluctuations, metal prices, integration of acquired businesses, and numerous political, economic, business, competitive and regulatory factors.