Indian mining and metals giant, Vedanta Resources, has unveiled plans to invest an additional $500 million into the Gamsberg zinc project situated in the South Africa, extending its financial commitment to the project to a grand total of $1 billion since 2018. This substantial investment is earmarked for financing the construction of a zinc concentrate concentrator adjacent to the existing mine until 2025. Vedanta currently holds a majority stake in Gamsberg, at 69.6%, with Exxaro Resources Corporation owning 24.4%, and the remaining 6% being distributed among employees.
This announcement comes amidst Vedanta's ongoing financial difficulties, including substantial debts and the near-bankruptcy of one of its major divisions in 2020, which owed $900 million in the first half of 2023. To tackle these financial issues, Vedanta is considering a restructuring plan, with CEO Anil Agarwal revealing the division of Vedanta into separate companies by the end of August 2023. This strategic move is aimed at attracting potential investors.
However, it's worth noting that the project faces considerable hurdles concerning infrastructure and the supply of electricity to the region where the mine is located. Vedanta intends to work collaboratively with the South African government to address them.