Vedanta will expand business in Africa

Group will sign two MoUs with South African firms when Anil Agarwal visits country as part of Modi's team on 8 July

The Anil Agarwal-led Vedanta group today announced expansion of its Africa business. The diversified natural resources company with interests in oil and gas, zinc-lead-silver, copper, iron ore, aluminium and power, already has a long-standing presence in the continent and has invested more than $4 billion in its African operations since 2004.

The group would be signing two memoranda of understanding (MoUs) with South African companies when he visits South Africa as part of a delegation accompanying Modi on 8 July.

These MoUs are for the development and supply of equipment and the transfer of technology, with the aim of improving safety and productivity at the mechanised underground mines of Vedanta’s subsidiary, Hindustan Zinc Limited (HZL).

Currently, the company mines copper in Zambia, produces zinc and lead concentrate at Black Mountain Mining (BMM) in South Africa, and zinc metal at Skorpion Zinc in Namibia.

Recently, Vedanta kick-started its Gamsberg Zinc Project at BMM with a capital investment of $400 million. Gamsberg, which is in the Northern Cape, holds one of the world’s largest undeveloped zinc sulphide deposits, with approximately 160Mt of defined ore resources.

“The true scale of business opportunities in Africa has not yet been explored, particularly in South Africa’s rich natural resources sector,” Anil Agarwal, Chairman of Vedanta Resources said. “I am certain the visit with Prime Minister Narendra Modi heralds an even more prosperous future for India and the African continent.”

For a natural resources company like Vedanta, South Africa offers a unique opportunity with its wealth of diverse natural resources. “We are committed to expanding our operations here and will continue to invest in our greenfield project at Gamsberg,” he said in a statement. “We already have a significant presence in South Africa and are well placed to help realise the vision of our Prime Minister of shared growth between India and South Africa in the future.”

Some 125 South Africans work on various HZL sites across India and Vedanta has awarded projects worth almost $300 million to at least seven companies based in South Africa to date, said a company statement. BMM is the largest private employer in the Bushmanland and Namaqua region, providing employment for 1,300 people, it said.

“The Gamsberg Project represents a significant opportunity to grow the local economy and create jobs while remaining committed to a long-term plan to rehabilitate a region rich in biodiversity,” says Naidoo.