New Delhi, Nov 13 (IANS): Sesa Sterlite will invest $782 million over three years to develop an open-pit zinc mine in South Africa, and conversion of a zinc refinery in neighbouring Namibia, a statement issued by the company said Thursday.
Once operational, the projects are expected to make the South African region the most important global supplier of refined zinc, the company claimed.
The Board of Directors of Sesa Sterlite has approved the decision as a result of which US $630 million, will go towards developing the open-pit zinc mine, concentrator plant and associated infrastructure at Gamsberg.
The remaining investment will be used to convert the refinery at the Skorpion Mine in Rosh Pinah, Namibia thereby enabling it to refine zinc concentrates from the Gamsberg mine into special high grade zinc metal, the statement also said.
"The Gamsberg-Skorpion Integrated Zinc Project is central to Vedanta's long term aspirations for southern Africa," said Mr Tom Albanese, CEO of Sesa Sterlite.
"It will also allow Vedanta to make a significant contribution to enabling the South African government achieve its goal of using the country's vast mineral wealth to help fight poverty and uplift communities through the creation of sustainable, long-term employment opportunities. This project provides significant synergies to both our operations and complements the needs of the region," the statement quoted Albanese as saying.
According to the statement, the project is expected to create 1,500 jobs during the construction phase and eventually result in 500 permanent jobs.
"The output from Gamsberg, coupled with extending the life of the world class refinery at the Skorpion mine in Namibia, will make the Southern African region one of the most important suppliers of refined zinc globally," Albanese said, adding that it will also help to "partially offset the loss of volume resulting from the end of life of mine at Lisheen in Ireland."
The first phase of the Gamsberg open pit mine is expected to have a total lifespan of approximately 13 years with the first ore likely to be produced in 2017-18.