Vedanta Group’s flagship company, Vedanta Limited, has doubled annual zinc production capacity at its South African operations to 500,000 tonnes¹ through an investment of nearly $600 million in Gamsberg Phase II, part of Vedanta Zinc International (VZI).

South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar inaugurated the expansion. Located in South Africa’s Northern Cape province, Gamsberg has one of the world’s most significant zinc deposits and is VZI’s flagship zinc mine. The expansion is one of the largest mining investments in South Africa this decade.

The project advances Vedanta Limited’s position as the world’s largest zinc producer² and supports its ambition to produce 3 million tonnes annually across India and South Africa. Its subsidiary Hindustan Zinc Limited, the world’s largest integrated zinc producer, is targeted to contribute 2 million tonnes, while VZI aims to contribute 1 million tonnes a year.

Zinc consumption is growing rapidly because the metal is essential to modern industrial and infrastructure development. Through galvanisation, zinc protects steel—the world’s most widely used metal—from corrosion, extending its service life and supporting applications in construction, automotive, manufacturing and other sectors. Together, Hindustan Zinc and VZI strengthen Vedanta Limited’s position to serve growing global demand for zinc.

The expansion is part of the ZAR 21 billion (nearly US$1.5 billion) investment commitment Vedanta made at the 2018 South Africa Investment Conference. At last month’s 18th BRICS Summit in New Delhi, President Ramaphosa called for increased Indian investment in key South African industries. Vedanta’s continued investment in the Northern Cape demonstrates the value of this growing economic partnership.

“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,” said South African President Ramaphosa.

“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,” said Priya Agarwal-Hebbar, Director, Vedanta, and Chairperson of Hindustan Zinc.

In addition to employment at its operations, Vedanta has invested nearly US$20 million in community initiatives in South Africa since acquiring VZI in 2011. Focused on health, education, care centres, sport, livelihoods, infrastructure and social welfare, these initiatives benefit more than 32,000 people each year. Earlier this year, VZI opened an oncology centre in Namakwa, a priority community project.