Vedanta doubles South Africa zinc capacity to 500,000 tonnes in $600m expansion

Vedanta Ltd has doubled its annual zinc production capacity in South Africa to 500,000 tonnes following the completion of a $600 million expansion at its flagship Gamsberg mine.

South African President Cyril Ramaphosa and Vedanta Ltd Director Priya Agarwal-Hebbar inaugurated the Phase II facility in the Northern Cape province on Sunday. The expansion represents one of the largest single mining investments in South Africa over the past decade.

The capital outlay forms part of a broader 21 billion South African rand (nearly $1.5 billion) commitment announced by Vedanta at the 2018 South Africa Investment Conference. The newly operational capacity strengthens the Indian multi-national's position as a dominant force in global industrial metals.

Vedanta's global zinc targets

The Gamsberg expansion aligns with Vedanta's strategy to achieve an annual global zinc output of 3 million tonnes across its Indian and African operational units.

Speaking at the inauguration, President Ramaphosa commended the progression of the project from planning to full industrial operation, noting that the South African government must partner with investors to support further industrial developments, including proposed domestic zinc smelting infrastructure.

"We have come to celebrate an investment that has moved from commitment to construction, and from construction to production," Ramaphosa said.

Zinc is primarily used in galvanisation to shield steel from corrosion, making it vital to global automotive, construction, and infrastructure supply chains.

Vedanta Ltd Director Priya Agarwal-Hebbar noted that the investment reflects the foundational vision of group Chairman Anil Agarwal to build an industrial hub that creates jobs and long-term economic value in the region.

Alongside its core capital projects, Vedanta said it has directed nearly $20 million into local community initiatives across South Africa since taking over Vedanta Zinc International in 2011, supporting healthcare, education, and infrastructure. This includes the opening of an oncology centre in Namakwa earlier this year, benefiting over 32,000 people annually.