The expansion will increase the Gamsberg's production capacity by an additional 200ktpa MiC Zinc, from initial 4Mtpa ore to 8Mtpa
Gamsberg is located nearly 30km from Black Mountain Mining (BMM). (Credit: Vedanta Zinc International)
Indian mining company Vedanta announced has approved the phase 2 expansion of the Gamsberg zinc project in South Africa.
Gamsberg is located nearly 30km from Black Mountain Mining (BMM) in the Northern Cape.
Vedanta owns a majority of 69.6% stake in the project, while South African BEE company Exxaro Resources owns 24.4% and ESOP accounts for 6%.
The Phase 2 expansion of the Gamsberg project is anticipated to cost $466m.
It is expected to increase the operation’s capacity by an additional 200ktpa MiC Zinc, which almost doubles the previous production of 4 million tonnes per annum (Mtpa) ore to 8Mtpa.
In addition, the expansion project would provide socio-economic benefits and make Vedanta Zinc International as the largest zinc producer in South Africa.
Vedanta has also approved $348m investment in its subsidiary ESL Steel, for the planned expansion of its steel project to a capacity of 3Mtpa.
The project also includes additional blast furnace with 1050m3 capacity, supported by 0.5Mtpa Coke Ovens, 1.8Mtpa Pellet Plant, 800TPD Oxygen Plant.
The expansion will include other auxiliaries and infrastructure upgradation works including Railway siding to Plant head, and a new 0.18Mtpa Ductile Iron Pipe plant.
Furthermore, Vedanta has also announced a $687m capex investment in Cairn Oil & Gas, to increase near term volume through infill wells, development and exploration.
The company has allocated $360m of the total investment for infill wells in the fields including Mangala, Bhagyam, Aishwariya, Aishwariya Barmer Hill, Ravva, among others.
Also, it will use $327m of the total investment for the exploration work programme across the OALP blocks and PSC blocks including pilot wells for Shale.