VEVedanta500295Capex expansion plan

Zinc production capacity in South Africa doubled to 500,000 tonnes with US$ 600 Mn investment

Vedanta announced the doubling of its annual zinc production capacity to 500,000 tonnes at its South Africa zinc operations.

By ScoutQuest · Sun 18 Oct 2026, 12:04 PM IST · 2 min read

Annual zinc production capacity (South Africa)

500,000 tonnes

Investment in Gamsberg Phase II

nearly US$ 600 Mn

Stated production vision across India and South Africa

3 million tonnes of annual production

Capacity doubled

• Annual zinc production capacity at the South Africa zinc operations is now 500,000 tonnes, described as a doubling. This figure is marked in the release as metal-in-concentrate.
• The expansion is at Gamsberg (Phase II) in South Africa's Northern Cape province, part of Vedanta Zinc International, which the release calls the flagship zinc mine of that business.
• Investment involved: nearly US$ 600 Mn.
• The expanded capacity was inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar.

Longer-term vision

• Vedanta restates a vision of achieving 3 million tonnes of annual production across India and South Africa.
• Of this, 2 million tonnes is targeted from subsidiary Hindustan Zinc Limited and 1 million tonnes from the Vedanta Zinc International business.

Part of a larger commitment

• The company says this expansion forms part of a ZAR 21 Bn (nearly US$ 1.5 Bn) investment commitment made at the 2018 South Africa Investment Conference.

Community spending

• Vedanta says it has invested nearly USD 20 Mn in community initiatives in South Africa since acquiring Vedanta Zinc International in 2011, covering health, education, care centres, sport, livelihoods, infrastructure and social welfare.

Why zinc is in focus

• The release says zinc consumption is growing because galvanisation protects steel from corrosion, supporting use in construction, automotive and manufacturing.
• It positions Hindustan Zinc and Vedanta Zinc International together as serving that global demand.

What a reader should weigh

• This is a capacity and investment announcement; it sets out tonnes of capacity and dollars committed, not revenue, profit or earnings from the expansion.
• The 500,000 tonnes capacity figure is described as metal-in-concentrate; the world's largest producer positioning is footnoted as refined metal, including metal-in-concentrate.
• The release carries a forward-looking statement note, saying such statements involve uncertainty and the company does not undertake to update them.

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