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Vedanta Zinc International, part of Vedanta Limited (Vedanta), has commenced mining activity at its Gamsberg project in South Africa, one of the world's largest undeveloped zinc deposits in the region, the parent company said in a release today.
With a vision to develop an integrated zinc business in the region, the first phase of Gamsberg open pit mine is expected to have a mine life of approximately 13 years and has its ore production scheduled to begin early 2018, said the Anil Agarwal-led company.
"We are developing Gamsberg in a phased manner using cash generated by Vedanta Zinc International (VZL) operations, while remaining focussed on sustainable cost reduction at both Gamsberg and Skorpion," said chief executive officer Deshnee Naidoo of VZL.
Vedanta had earlier announced a $782 million investment project to develop an open pit zinc mine in Gamsberg, South Africa and upgradation of Skorpion zinc refinery in Namibia.
Under the scope of work for Skorpion refinery, the facility will be upgraded to be able to convert zinc sulphide from the Gasberg mine in addition to the zinc oxide conversion capability it has at present for ore produced in Namibia.
The investment plan of the company has been spread over a span of next three years with majority, about $630 million, going towards developing the mine, concentrator plant and associated facilities at Gamsberg into special, high grade metal.
The mine will be partially replacing output from Vedanta Zinc International's Lisheen operation in Ireland, which will shut end-November, said the company.
"We are very excited to have reached this stage of the project. We believe that this region has the highest concentration of zinc on the African continent and that we can develop an integrated zinc and lead complex here, anchored around Gamsberg and the Skorpion Refinery, which will boost economic growth and create sustainable employment. Vedanta believes strongly in the philosophy of sustainable development and we commit to protecting the unique ecosystem around Gamsberg for future generations," chief executive officer of Vedanta Tom Albanese was quoted as saying.
The Gamsberg mine is located in an ecologically sensitive biodiversity area and we have designed this mine to avoid adverse impact where possible.
Shares of Vedanta today ended 3 percent down at Rs 128.40 on BSE.
