Vedanta Limited has invested nearly $600 million to double annual zinc production capacity at its Gamsberg operation in South Africa to 500,000 tonnes of metal-in-concentrate.
The expansion, known as Gamsberg Phase II, was inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar. Vedanta described the project as one of the largest mining investments made in South Africa during the past decade.
Gamsberg is the flagship mine of Vedanta Zinc International and contains one of the world’s most significant zinc deposits. The Phase II development increases the operation’s annual production capacity as Vedanta works toward a broader target of producing 3 million tonnes of zinc annually across India and South Africa.
Under that strategy, subsidiary Hindustan Zinc Limited is targeted to contribute 2 million tonnes of annual production, while Vedanta Zinc International is expected to contribute 1 million tonnes. Vedanta described itself as the world’s largest zinc producer based on refined metal production, including metal-in-concentrate, while Hindustan Zinc is positioned by the company as the world’s largest integrated zinc producer.
The Gamsberg investment also advances the ZAR 21 billion, or approximately $1.5 billion, investment commitment Vedanta made at the 2018 South Africa Investment Conference.
Vedanta is positioning South Africa as an increasingly important part of its global zinc operations. Along with expanding mining output, the company has expressed an ambition to establish zinc smelting capacity in the Northern Cape and develop a broader zinc and industrial hub in the region.
The company sees long-term demand for zinc being supported by infrastructure, automotive production, construction, and manufacturing. Zinc is widely used in galvanization to protect steel from corrosion and extend the usable life of infrastructure and manufactured products.
By expanding Gamsberg while increasing output through Hindustan Zinc, Vedanta aims to position its zinc businesses to serve growing global demand while increasing its industrial footprint in South Africa.
KEY QUOTES:
“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.”
Cyril Ramaphosa, President Of South Africa
“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, Director Of Vedanta And Chairperson Of Hindustan Zinc
