Financial Insights

Vedanta to invest $1.5 billion in oil, zinc and steel businesses

Vedanta Ltd. has approved an investment of $1.5 billion into its oil zinc and steel businesses.

The approved projects are Cairn Oil & Gas, Zinc International- Gamsberg Phase 2 project & ESL Steel Limited’s 3 MTPA growth project.

“The strategic priority for the Cairn Oil & Gas business is to increase near term volume through infill wells and add resources through exploration,” explained Vedanta in an official statement. In order to achieve these goals, the board has approved capex investment (net) of $687 million. Of these, $360 million have been earmarked for infill wells in the prolific fields viz Mangala, Bhagyam, Aishwariya, Aishwariya Barmer Hill, Ravva, etc. “The exploration work program with capex investment of $327 million shall be spread across the OALP blocks and PSC blocks including pilot wells for Shale,”

The investment in Zinc International will double up the Gamsberg capacity from 4Mtpa ore to 8Mtpa to produce additional 2ktpa Zinc at a cost of $466 million. This step is said to bring socio-economic benefit and make the company South Africa’s largest zinc manufacturer.

The 3 MTPA growth Project of ESL Steel Limited, a subsidiary of Vedanta, includes an investment of $324 million. The steel expansion project comes with “additional Blast Furnace of 1050 m3 supported by 0.5 MTPA Coke Ovens, 1.8 MTPA Pellet Plant, 800 TPD Oxygen Plant & other auxiliaries and infrastructure upgradation including Railway siding to Plant head. This project also comes with a new 0.18 MTPA Ductile Iron Pipe Plant which will help us to maximize VAP. This project along with debottlenecking of BF#3, Sinter Plants & new LRF will take us to the capacity of 3 MTPA with the lowest quartile cost & premium product portfolio,” noted Vedanta. 

Highlight by Aman Agarwal.

Related Articles

Back to top button