THEBUSINESSBYTES
BUREAU
NEW
DELHI, OCTOBER 18, 2026
Vedanta Ltd, the
flagship company of the Vedanta Group, has doubled its annual zinc production
capacity in South Africa to 500,000 tonnes with an investment of nearly USD 600
million, as it steps up efforts to achieve a global production target of 3
million tonnes annually across India and South Africa.
South African
President Cyril Ramaphosa and Vedanta Ltd Director Priya Agarwal-Hebbar
inaugurated the expanded capacity at the Gamsberg mine in the Northern Cape
province, marking one of the largest mining investments in South Africa this
decade.
The expansion, part
of Phase II of the Gamsberg project operated by Vedanta Zinc International
(VZI), strengthens the company's position in the global zinc market and
advances its ambition to build a globally significant zinc and industrial hub
in the region.
Vedanta aims to
achieve annual zinc production of 3 million tonnes across its Indian and South
African operations, with its subsidiary Hindustan Zinc Ltd targeting 2 million
tonnes and Vedanta Zinc International expected to contribute 1 million tonnes.
Hindustan Zinc is the world's largest integrated zinc producer.
Gamsberg, home to one
of the world's significant zinc deposits, is the flagship mine of Vedanta Zinc
International. The capacity expansion is also part of Vedanta's broader
investment commitment of 21 billion South African rand, or nearly USD 1.5
billion, announced at the 2018 South Africa Investment Conference.
The investment comes
amid growing demand for zinc, a key industrial metal widely used to protect
steel from corrosion through galvanisation. The process extends the lifespan of
steel and supports applications across infrastructure, construction, automotive
and manufacturing industries.
The expanded capacity
is expected to strengthen Vedanta's ability to cater to rising global zinc
demand, while reinforcing the strategic importance of its operations in India
and South Africa.
Welcoming the
investment, Ramaphosa said the project had progressed from an investment
commitment to construction and production, while expressing support for
Vedanta's ambition to establish zinc smelting capacity in the Northern Cape.
The South African
government must work with Vedanta and other partners to address the company's
requirements, he said.
At the 18th BRICS
Summit in New Delhi last month, Ramaphosa had called for greater Indian
investment in key South African industries, highlighting the potential for
deeper economic cooperation between the two countries.
Vedanta's continued
investment in the Northern Cape underscores the growing economic partnership
between India and South Africa, particularly in the mining and industrial
sectors.
“For Vedanta, Gamsberg Phase II is more than
an expansion of its zinc business. It is a commitment to South Africa's
future,” Agarwal-Hebbar said.
She said Vedanta
founder and Chairman Anil Agarwal had made the commitment in the belief that
South Africa's mineral wealth could become a foundation for industrial growth,
jobs and economic opportunity.
The company's
ambition is to build a globally significant zinc and industrial hub in the
region, creating long-term value for the country and its people, she said,
adding that success should be measured not merely by production but also by the
prosperity generated for future generations.
Beyond its mining
operations, Vedanta has invested nearly USD 20 million in community initiatives
in South Africa since acquiring Vedanta Zinc International in 2011. The
programmes cover healthcare, education, care centres, sports, livelihoods,
infrastructure and social welfare, benefiting more than 32,000 people annually.
Earlier this year, Vedanta Zinc International also opened an oncology centre in Namakwa as part of its community development initiatives.
With the Gamsberg expansion, Vedanta is strengthening its production base in South Africa while pursuing its broader strategy of scaling up zinc output, supporting industrial development and positioning itself to meet growing global demand for the metal.
