Vedanta doubles South African zinc capacity with nearly $600 million expansion

Key Facts

Vedanta announced it had doubled its annual zinc production capacity in South Africa following the inauguration of the Gamsberg expansion, an investment of nearly $600 million that increases ore mining, processing and concentrate production capacity. President Cyril Ramaphosa inaugurated the expansion on 16 October 2026 in Aggeneys in the Northern Cape province, according to a speech published by the South African government to mark the opening. The presidency said annual zinc-in-concentrate capacity rises to about 500,000 tonnes following the expansion. Ramaphosa said the project doubles annual ore capacity from about 4 million tonnes before the expansion to 8 million tonnes after it. The Gamsberg expansion belongs to Vedanta Zinc International, part of the group's South African operations.

The inauguration followed an increase in Gamsberg's actual production during the 2025–2026 financial year, according to Vedanta's annual report on its international zinc business. The mine produced 185,000 tonnes during that year, compared with 133,000 tonnes in the 2024–2025 financial year. Gamsberg thus recorded annual growth of 39%, according to figures the company provided in its report. Across Vedanta Zinc International's combined operations, total production reached about 225,000 tonnes during the 2025–2026 financial year. That compares with production of 178,000 tonnes in the previous year, an annual increase of 27% across the operations. The company attributed this growth mainly to higher volumes of ore processed and improved zinc ore grades, the two factors it cited to explain increased production in its international business.

Construction of the Gamsberg expansion officially began on 5 August 2022, according to Vedanta Zinc International's statement on the project's groundbreaking. The work included construction of the concentrator expansion that Ramaphosa inaugurated as part of the project in the Northern Cape. The president said in his inauguration speech that construction employed more than 1500 people during the expansion. During the operating phase, the presidency expects the expanded operation to sustain between 800 and 1000 jobs. The presidency linked its employment expectations to operations at the expanded facility, with a focus on recruiting workers from the Northern Cape province. The group's investment presence in this context dates back to a pledge of about 21 billion rand at South Africa's first investment conference in 2018, according to the government news agency.

The additional zinc concentrate production capacity follows a financial year in which Vedanta described pressure on smelters caused by a shortage of the material. The company said in the section of its annual report covering its Indian zinc business that concentrate shortages intensified during the 2025–2026 financial year. This led to a decline in spot-market concentrate treatment charges, putting substantial pressure on smelter margins, according to the report. In his Gamsberg inauguration speech, Ramaphosa highlighted zinc's industrial use, saying it was "essential for galvanising steel and protecting it from corrosion". The South African expansion adds zinc-in-concentrate capacity, while the addition of domestic smelting capacity forms part of a subsequent plan the company announced for the Gamsberg project.

In the trading session coinciding with the inauguration, Vedanta shares closed at 246.10 Indian rupees, according to historical price data published on Investing.com. The shares rose 0.08% in the 16 October 2026 session compared with the previous session's close. On subsequent investment, Ramaphosa stressed requirements related to energy and infrastructure needed to sustain investment in his inauguration speech. He said this required "commercially viable electricity, reliable infrastructure and other enabling conditions". His comments on these requirements came during the inauguration of the expansion, while Vedanta's stated priorities include additional investments related to production and smelting in South Africa.

Vedanta is targeting production of about 350,000 tonnes of metal in concentrate from its South African operations in the 2026–2027 financial year, according to its published strategic priorities. The company links achieving this target to ramping up the Gamsberg expansion as part of its plan to increase production from its South African operations. The target covers metal in concentrate produced by these operations combined, according to the company's wording of its financial-year objectives. At a later stage, Vedanta plans to start production at the Gamsberg smelter during the 2029–2030 financial year. Planned production capacity for the smelter's first phase is 300,000 tonnes annually, according to the same strategic priorities. This date represents the next scheduled step in the smelting plan announced by the group following the expansion of mining and ore processing capacity at Gamsberg.