Vedanta Resources plans $500 million investment
The Dollar Business Bureau
Vedanta Resources has planned to invest $500 million in its zinc business. The investment amount is about half of the total capex for the current fiscal 2016-17. The company led by Anil Agarwal is one of the largest integrated zinc-lead producers. Their output during the financial year 2015-16 was 1,115- kilo tonnes (KT).
In its annual report, Vedanta Resources said, “Going forward, our current requirements are low, with 2016-17 capex expected to be around $1 billion, half of which would be across the high-return zinc projects at Gamsberg and Zinc India.”
The firms said that its capex was optimized to a reduced level of $600 million in 2015-16. A majority of this was invested in projects like Mangala EOR Programme, expansion at Zinc India and others.
Vedanta’s zinc operations comprises of Hindustan Zinc in India, and the assets of Zinc International across Ireland, Namibia and South Africa. The total mined metal production in 2014-15 was 887 (KT) in India and 312 overseas.
Hindustan Zinc Limited has facilities in Dariba, Chanderiya and Zawar in Rajasthan. They also have refining facilities in Uttarakhand. In Haridwar they have zinc refining facilities, silver and lead processing facilities in Pantnagar.
Its global zinc operations consist of the Black Mountain Mining in South Africa, Skorpion zinc mine and refinery in Namibia and Lisheen mine in Ireland. Vedanta Resources started its mine development activity at the Gamsberg project in South Africa in July 2015.
The project consists of 250 kilo tonnes per annum mine. The initial production for the same is expected to start in early 2018.