Vedanta 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, the company said in a press release on Sunday (October 18).
South African President Cyril Ramaphosa and Vedanta Director Priya Agarwal-Hebbar inaugurated the expanded capacity at Gamsberg in the Northern Cape province.
The expansion is part of Vedanta’s investment commitment of 21 billion South African rand (nearly $1.5 billion) announced at the 2018 South Africa Investment Conference.
Vedanta targets 3 million tonnes
Vedanta aims to produce 3 million tonnes of zinc annually across India and South Africa. Its subsidiary Hindustan Zinc is targeting 2 million tonnes, while Vedanta Zinc International plans to contribute 1 million tonnes a year.
The company said the expansion would increase its capacity to supply zinc, which is used in galvanisation to protect steel from corrosion. The metal is used in construction, automotive and manufacturing industries.
Commenting on the investment, South African President Cyril Ramaphosa said, “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.”
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Vedanta’s community spending
Speaking on the expansion, Priya Agarwal-Hebbar, Director at Vedanta and Chairperson of Hindustan Zinc, said, “For Vedanta, Gamsberg Phase II is more than an expansion of its zinc business. It is a commitment to South Africa’s future.”
She said the investment was linked to the development of the country’s mineral resources. “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,” she said.
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, livelihoods, infrastructure, sport and social welfare, and benefit more than 32,000 people each year, according to the company.
