8th Jul 2016 10:17
LONDON (Alliance News) - Vedanta Resources PLC Friday said it plans to expand its footprint in Africa by investing in one of the largest undeveloped zinc sulphide resources in the world and by signing two new deals that will introduce South African firms to its subsidiary in India.
Vedanta was trading up 4.1% to 475.30 pence per share on Friday morning.
The multi-commodity miner is already one of the leading natural resource companies operating in India but the company plans to enhance operations in Africa to build on the USD4.00 billion that it has invested into the country since 2004.
Vedanta's current operations on the continent include copper mining in Zambia, zinc and lead concentrate production at Black Mountain Mining in South Africa and zinc metal production at Skorpion Zinc in Namibia.
The latest project to be launched by the company is the Gamsberg zinc operation at Black Mountain Mining, which will involve USD400.0 million of capital being invested. The project lies in the Northern Cape of South Africa and holds one of the world's largest undeveloped zinc sulphide deposits with around 160.0 million tonnes of defined ore resources.
"We are committed to expanding our operations here and will continue to invest in our greenfield project at Gamsberg," said Chairman Anil Agarwal.
Vedanta, led by Agarwal, will be part of a delegation accompanying Indian Prime Minister Nahendri Modi on his visit to South Africa later Friday as the two countries meet to discuss shared growth opportunities.
Agarwal said he plans to sign two new memoranda of understanding with South African companies during the meeting, further expanding Vedanta's activity in the country.
The goal of the agreements is to improve the safety and productivity at the mechanised underground mines owned by Vedanta's subsidiary, Hindustan Zinc Ltd, through the development and supply of equipment.
Vedanta said India-based Hindustan already employs around 125 South Africans across various sites in India and Vedanta has awarded projects worth almost USD300.0 million to at least seven companies based in South Africa to date, it said.
"Vedanta believes that its Gamsberg project together with its investment in technology and innovation with local partners will contribute significantly to improving the livelihoods of local communities in both India and South Africa," said Vedanta.
The new Gamsberg project will help to enhance the existing zinc, lead, copper and silver operation at Black Mountain Mining in South Africa, which has been operating for over 30 years. With Gamsberg, Black Mountain Mining has the potential to continue producing for "at least the next two decades", according to Vedanta.
Notably, Black Mountain Mining is the largest private employer in the Bushmanland and Namaqua region, providing around 1,300 jobs at present.
By Joshua Warner; [email protected]; @JoshAlliance
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