- $600 million investment expands South African zinc production
- Phase II supports company’s 3 mnt annual zinc target
Vedanta Limited has doubled its annual zinc production capacity at the Gamsberg mine in South Africa to 500,000 tonnes following an investment of nearly $600 million in the project’s second phase. The expansion, inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar on 18 October, strengthens the company’s production base outside India and advances its ambition to increase global zinc output.
Located in South Africa’s Northern Cape province, Gamsberg is Vedanta Zinc International’s flagship mining operation. The Phase II expansion represents a significant step in the company’s strategy to build a larger zinc production portfolio across India and South Africa.
Expansion supports 3 mnt production target
Vedanta aims to achieve annual zinc production of 3 mnt across its Indian and South African operations. Its subsidiary Hindustan Zinc Limited is targeting 2 mnt annually, while Vedanta Zinc International plans to increase output to 1 mnt.
The expanded Gamsberg capacity of 500,000 tonnes accounts for half of VZI’s stated production target, leaving further capacity additions necessary to achieve the company’s ambition.
Zinc demand from construction, infrastructure, automotive and manufacturing industries underpins the expansion strategy. The metal is primarily used in galvanising steel to improve corrosion resistance and extend its service life.
Investment strengthens South African operations
The Gamsberg expansion forms part of Vedanta’s investment commitment of ZAR 21 billion, equivalent to nearly $1.5 billion, announced at the 2018 South Africa Investment Conference.
Ramaphosa welcomed the expansion and highlighted the importance of cooperation between the government and businesses investing in the Northern Cape. Vedanta said the project would support the development of a regional zinc and industrial hub, with potential benefits for employment and local economic activity.
The expansion also reinforces South Africa’s role in Vedanta’s international zinc strategy, complementing its established Indian production base.
Community development initiatives
Vedanta Zinc International has invested nearly $20 million in community initiatives in South Africa since acquiring the business in 2011. The programmes cover healthcare, education, sports, livelihoods, infrastructure and social welfare, benefiting more than 32,000 people annually.
The company also opened an oncology centre in Namakwa earlier in 2026 as part of its community development programme.
Outlook
The Gamsberg expansion increases Vedanta’s South African zinc production capacity and provides a foundation for further growth towards its 3 mnt annual production target. However, achieving that target will require additional capacity development beyond the current expansion, particularly as VZI aims to reach 1 mnt annually.
The project’s longer-term contribution will depend on the execution of subsequent expansion plans and the company’s ability to translate installed capacity into actual production. Further details on expected output ramp-up, operating costs and project timelines would help assess the expansion’s implications for global zinc supply.
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