Zinc Ambitions Rise: Vedanta Commits USD 466 Million to Expand Gamsberg Phase II to 8 MTPA

Vedanta Ltd has greenlit a major expansion of its Gamsberg Phase II zinc project in South Africa, committing USD 466 million to double the mine’s annual ore capacity from 4 million tonnes per annum (MTPA) to 8 MTPA. The investment signals Vedanta’s strategic intent to strengthen its global zinc footprint and elevate South Africa’s position on the global mining map.

 

Key developments from the announcement

- The Phase II expansion will increase zinc-in-concentrate output by 200 kilo-tonnes per annum (ktpa), enhancing Vedanta Zinc International’s production capabilities

- The project includes construction of a new concentrator plant, tailings dam, water reservoirs, and power transmission infrastructure

- Engineering work is fully completed, procurement is 96 percent done, and overall project completion stands at 53 percent

- The expansion is expected to create 2,000–2,500 jobs during construction and 600 permanent roles post-commissioning

 

Strategic and operational context

- Gamsberg is Africa’s largest zinc mine, with a life-of-mine exceeding 30 years and ore reserves now expanded from 214 million tonnes to 525 million tonnes

- The mine currently produces 400,000 tonnes of ore monthly, with Phase II designed to push annual output to 500 ktpa of zinc-in-concentrate

- Vedanta acquired the asset from Anglo American in 2011 and initiated operations in 2015, with full-scale production commencing in 2019

 

Socio-economic and environmental impact

- The project is expected to deliver significant socio-economic benefits to the Northern Cape region, including local employment and community development initiatives

- Vedanta is working with the International Union for Conservation of Nature (IUCN) to implement a biodiversity offset agreement, ensuring sustainable development

- Community investments include health, education, water harvesting, agriculture, and social forestry programs tailored to local needs

 

Future outlook and scalability

- The Gamsberg site holds potential for a Phase III underground expansion, which could add another 150 ktpa of zinc-in-concentrate

- Vedanta is also exploring the feasibility of a smelter-refinery complex to support local beneficiation and value addition

- The expansion aligns with Vedanta’s broader vision of becoming a digitally advanced, integrated operation producing 1 MTPA of zinc while maintaining cost efficiency

 

Conclusion

Vedanta’s USD 466 million investment into Gamsberg Phase II marks a pivotal moment in its global mining strategy. By doubling capacity and embedding sustainability into its operations, the company is not only scaling production but also reinforcing its commitment to responsible growth and regional development.

 

Sources: Vedanta Zinc International, NS Energy, Vedanta Ltd corporate filings, Vedanta Limited case studies, Gamsberg project disclosures