On 19 October, Vedanta Limited shares fell in the noon session after the group’s flagship company announced a doubling of its annual zinc production capacity to 500,000 tonnes of metal‑in‑concentrate (MIC) at its South African operations. At 12:15 AM the stock was down 0.61 % at ₹244.60. The decline followed a Sunday announcement that the company would raise its zinc output to 500,000 t MIC, a move that has weighed on investor sentiment and pushed the shares lower in the market.

Vedanta Zinc International (VZI) backed the Phase II expansion at the Gamsberg mine with an investment of nearly $600 million. The project was officially inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal‑Hebbar, marking a significant milestone for the company’s South African zinc operations. The ceremony underscored the partnership between the government and Vedanta, with the president highlighting the transition from commitment to construction and the importance of establishing zinc smelting capacity in the Northern Cape for the nation.

Gamsberg, located in South Africa’s Northern Cape province, hosts one of the world’s most significant zinc deposits and serves as VZI’s flagship zinc mine. The Phase II expansion is described as one of the largest mining investments in South Africa in this decade, according to the company’s press release. By increasing capacity, Vedanta aims to solidify its position as the world’s leading refined‑metal zinc producer, while also reinforcing its long‑term commitment to the region’s mining sector and economic development.

Vedanta Ltd stated that the expansion further advances its ambition to become the world’s largest refined‑metal zinc producer, with a vision of achieving 3 million tonnes of annual production across India and South Africa. Of this total, 2 million tonnes are targeted from its subsidiary Hindustan Zinc Limited, the world’s largest integrated zinc producer, while Vedanta Zinc International aims to contribute 1 million tonnes annually. The company’s strategy involves scaling up both mining and smelting operations to meet the projected demand, thereby reinforcing its global supply chain and ensuring a steady supply of zinc for industrial applications worldwide.

The press release highlighted that zinc consumption is growing rapidly, as the metal is essential to modern industrial and infrastructure development. Through galvanisation, zinc protects steel, the world’s most widely used metal, from corrosion, extending its service life and supporting applications across construction, automotive, manufacturing and other sectors. By strengthening its zinc supply chain, Hindustan Zinc and Vedanta Zinc International together position Vedanta Limited to meet this expanding global demand, ensuring that the company can supply the necessary raw material for a wide range of industrial uses.

The expansion forms part of the ZAR 21 bn (nearly US$ 1.5 bn) investment commitment Vedanta made at the 2018 South Africa Investment Conference. At last month’s 18th BRICS Summit in New Delhi, President Ramaphosa called for increased Indian investment in key South African industries, and Vedanta’s continued investment in the Northern Cape demonstrates the tangible value of this growing economic partnership. Ramaphosa remarked that the project has moved from commitment to construction and to production, urging the government to collaborate with Vedanta and other partners to meet their requirements. Vedanta’s director Priya Agarwal‑Hebbar emphasized that the project is a commitment to South Africa’s future, aiming to build a globally significant zinc and industrial hub that creates lasting value for the country and its people.