Vedanta Ltd has allocated nearly $600 million to double the annual zinc production capacity in its South African operations, bringing it to 500,000 tons. This aligns with the company's overall goal of achieving an annual zinc production volume of 3 million tons in the Indian and South African markets.
The investment is being made in the Gamswort mine in South Africa, which is the flagship zinc mine of Vedanta Zinc International. This expansion is part of the company's broader plans to increase zinc extraction in its operations in India and South Africa.
Vedanta plans to produce 2 million tons annually through its subsidiary Hindustan Zinc Ltd and 1 million tons through Vedanta Zinc International.
This expansion is part of Vedanta's total commitment of 21 billion South African Rand (equivalent to almost $1.5 billion), announced by the company at the South African Investment Conference in 2018. The company described the Gamswort expansion as one of the largest mining investments in South Africa in the last decade.
The second phase of the Gamswort mine expansion, located in the Northern Cape province, was inaugurated by South African President Cyril Ramaphosa and Vedanta Director Priya Agarwal-Hebbar on Sunday.
Ramaphosa welcomed the investment, stating that the South African government would cooperate with Vedanta and other partners to meet the company's needs. He noted: 'We welcome Vedanta's ambitions to create zinc smelting capacity in the Northern Cape,' adding that the investment project has moved from the commitment stage to construction and production.
The expansion comes amid Vedanta's drive to strengthen its position in the global zinc market. Zinc is critical for industrial and infrastructure development, as galvanization using zinc protects steel from corrosion and extends its lifespan. This metal is used in the construction, automotive, and manufacturing sectors.
Priya Agarwal-Hebbar emphasized that this expansion demonstrates the company's commitment to South Africa and its aim to create a significant zinc production center and industrial hub in the region.