VEDANTA Zinc International (VZI) said total mineral reserves and resources at its Southern Africa deposits increased 17% in the year ended March 31 following a three-year exploration campaign.
Mineral reserves were also higher owing to the completion of the group’s Gamsberg Phase II expansion study which is looking at expanding the 250,000 tons a year mine and smelter in South Africa’s Northern Cape province to as much as 600,000 tons annually. The first phase investment totalled some $400m.
Details of the completed expansion study results were not provided.
Total mineral reserves and resources increased to 525 million tons (Mt) from 450Mt previously. The mineral reserves and resources stated include those of Gamsberg, Swartberg, Deeps, as well as the Skorpion deposit in Namibia. VZI’s total combined metal contained in reserves now stands at 8.5Mt.
Sunil Duggal, Group CEO of Vedanta, said the aim of the company’s efforts in the Northern Cape province was to position itself as a driver of industrialisation and employment. However, the company has said previously that only improved access to water and power infrastructure, and a more benign regulatory environment, would encourage investment.
“We need speedy decisions on issues like power, infrastructure and fiscal stability,” said former head of VZI, Deshnee Naidoo in November last year. “Without certainty on these issues, investors will be reluctant to commit to projects that might take a long time to show a return on investment.
“The risk is simply too great,” she said.
The South African government has only recently called for tenders for its next round of renewable power, more than a year after it was expected to be requested.
