Vedanta Ltd has doubled its annual zinc production capacity in South Africa to 500,000 tonnes following an investment of nearly $600 million in the second phase of its Gamsberg mine expansion, the company said in a statement.
South African President and Director Priya Agarwal-Hebbar inaugurated the expansion at Gamsberg in the Northern Cape province. The project is part of Vedanta Zinc International’s operations and marks one of the largest mining investments in South Africa this decade.
Gamsberg is the flagship zinc mine of Vedanta Zinc International and hosts one of the world’s significant zinc deposits.
The expansion strengthens Vedanta’s ambition to achieve annual zinc production of 3 million tonnes across India and South Africa. The company is targeting 2 million tonnes annually through its subsidiary Hindustan Zinc Ltd, while Vedanta Zinc International aims to contribute the remaining 1 million tonnes.
Vedanta’s investment plans in South Africa
The Gamsberg Phase II expansion forms part of Vedanta’s investment commitment of 21 billion South African rand, or nearly $1.5 billion, announced at the 2018 South Africa Investment Conference.
Ramaphosa welcomed the investment and said the government would work with Vedanta and other partners to address the company’s requirements. He also expressed support for the development of zinc smelting capacity in the Northern Cape.
Priya Agarwal-Hebbar said the project reflected Vedanta’s commitment to South Africa’s industrial development, employment generation and economic opportunities. She added that the company’s ambition was to develop a globally significant zinc and industrial hub in the region.
At the 18th in New Delhi last month, Ramaphosa called for greater Indian investment in key South African industries, Vedanta said.
Why zinc production matters
Zinc is widely used in galvanisation, a process that protects steel from corrosion and extends its service life. It is used across construction, automotive manufacturing and other industrial applications.
Vedanta said its operations in India and South Africa would strengthen its ability to meet rising global demand for the metal.
Hindustan Zinc is described by Vedanta as the world’s largest integrated zinc producer, while the group aims to expand its overall zinc output through investments in both countries.
Vedanta’s community investments in South Africa
Beyond its mining operations, Vedanta 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, childcare centres, sports, livelihoods, infrastructure and social welfare, benefiting more than 32,000 people annually, according to the company.
Vedanta Zinc International also opened an oncology centre in Namakwa earlier this year as part of its community development efforts.