Vedanta Limited has doubled its annual zinc production capacity to 500,000 tonnes at its South African operations through a $600 million investment. The expansion at the Gamsberg mine (Phase II) was inaugurated by South African President Cyril Ramaphosa and Vedanta Director Priya Agarwal-Hebbar on October 18, 2026.

This development strengthens Vedanta's position as the world's largest zinc producer. The company aims to achieve 3 million tonnes of annual production across India and South Africa. Of this target, 2 million tonnes are expected from subsidiary Hindustan Zinc Limited, while the Vedanta Zinc International business will contribute 1 million tonnes annually.

Strategic significance for global supply

The Gamsberg expansion represents one of the largest mining investments in South Africa this decade. It forms part of a broader ZAR 21 billion (nearly $1.5 billion) investment commitment made by Vedanta at the 2018 South Africa Investment Conference. The move aligns with recent calls from President Ramaphosa during the BRICS Summit for increased Indian investment in key South African industries.

Zinc remains critical for industrial infrastructure, primarily used in galvanizing steel to prevent corrosion. This supports sectors including construction, automotive, and manufacturing. By integrating operations between Hindustan Zinc and Vedanta Zinc International, the company positions itself to meet rising global demand.

Community and economic impact

Beyond production metrics, Vedanta has maintained a focus on local community development since acquiring Vedanta Zinc International in 2011. The company has invested nearly $20 million in initiatives focused on health, education, livelihoods, and infrastructure. These programs benefit more than 32,000 people each year. Recently, an oncology centre was opened in Namakwa as part of these social welfare efforts.

Director Priya Agarwal-Hebbar emphasized that the expansion reflects a commitment to South Africa's industrial growth. She noted that the ambition extends beyond mining to building a globally significant zinc and industrial hub in the Northern Cape region.

What the numbers show

The scale of the Gamsberg Phase II investment highlights a strategic pivot toward consolidating global market share rather than merely expanding domestic capacity. With $600 million deployed to add 500,000 tonnes of capacity, the capital intensity suggests a focus on high-quality assets. The Gamsberg deposit is cited as one of the world's most significant zinc sources, implying that future margins may benefit from lower extraction costs compared to older, deeper mines. Furthermore, the split of the 3 million tonne vision shows that international assets (VZI) are now targeted to supply one-third of Vedanta's total zinc output, reducing dependency on Indian regulatory environments.

Vedanta Limited declared a first interim dividend of ₹5 per equity share for the financial year 2026-27. The payout amounts to approximately ₹1,955 crore, reflecting the company's continued commitment to shareholder returns.

The Board of Directors approved the dividend at a meeting held on October 8, 2026, at 1:00 pm IST. This decision follows an earlier intimation letter dated October 5, 2026, and was made in compliance with Regulation 30 of the SEBI Listing Regulations.

Dividend details

The dividend is declared on equity shares with a face value of ₹1 each. Shareholders whose names appear in the company's records on the specified record date will be eligible for the payment.

Payment timeline

The interim dividend will be paid within the timelines prescribed under law following the record date of Wednesday, October 14, 2026. The company has notified the National Securities Depository Limited and Central Depository Services (India) Limited regarding the declaration.