Operational Review
FY 2024-25 recorded a declined production compared to FY 2023-24 marked by operational headwinds across assets. Black Mountain faced a temporary suspension following a fatal incident, along with shaft breakdowns and plant stoppages, which impacted throughput and recovery. Gamsberg operations were constrained by geotechnical issues and equipment availability, leading to ore shortages. Skorpion Zinc remained under care and maintenance since May 2020, with restart efforts continuing. The year was defined by a focus on operational stability and asset recovery across the portfolio.
Vedanta Zinc International (VZI)’s total production stood at 178 kt, down 15% Y-o-Y, primarily due to lower throughput and lead grades, partly offset by improved zinc grades and recoveries.
Production declined at Black Mountain Mine (BMM), by 28% to 44 kt, mainly due to lower tonnes milled, reduced lead grades and recoveries, with partial offset from better zinc grades.
Gamsberg produced 133 kt, 9% lower Y-o-Y, due to reduced tonnes treated. However, higher zinc grades and improved recoveries, along with a 31% increase in waste mined, supported ramp-up efforts.
Skorpion Zinc remained under care and maintenance, with restart options under evaluation.
Gamsberg’s cost of production (COP) excluding TcRc decreased by 4% to US$ 1,135 per tonne, primarily due to lower mining and other costs, partly offset by reduced zinc and lead production and ZAR appreciation against the US$.
Overall zinc COP including TcRc declined by 13% to US$ 1,299 per tonne, driven by lower treatment and refining charges and reduced mining costs, partially offset by lower concentrate production and the adverse impact of local currency appreciation on cost.
Gamsberg Phase 2 involves expanding mining capacity from 4 MTPA to 8 MTPA and constructing a new 4 MTPA concentrator plant. Approved by the Vedanta Board in Q4 FY 2021-22, the project has received major equipment and is at an advanced stage of SMPP installation, with electrical cabling and piping underway since March 2025.
The project aims to recover magnetite from BMM’s fresh tailings. With internal and environmental approvals in place, the project restarted in Q4 FY 2023-24 and has reached 86% overall progress and 83.7% construction completion. Due to financial constraints, the EPC contractor exited, and the process to onboard a new partner is underway, targeting completion in the second half of FY 2025-26.
Revenue for the year stood at ₹ 3,918 crore, up 10% Y-o-Y, driven primarily by higher zinc grades. EBITDA rose 90% to ₹ 1,321 crore, supported by improved LME prices and rupee depreciation, partially offset by lower volumes.
VZI completed the purchase of the remaining two farms – Remainder of Haramoep 53 and Portion 1 of Koenabib 43-required under Clause 6 of the Biodiversity Offset Agreement. These will be included in the Gamsberg Nature Reserve to support a No Net Loss of Biodiversity. The target of 3,000 trees was met to support urban greening and community initiatives. A purchase order has been raised for the Green Zinc Mark Certification Project with RCS Global, and contract approval with the Green Zinc Mark Institute is in process ahead of the site audit. Gamsberg and BMM retained their ISO 14001:2015 certification through successful recertification.
VZI’s initiatives to advance women in mining and leadership roles have resulted in 20% of women employees in leadership and 22% representation in the total workforce. A new five-year Social Labour Plan has been approved, with projects underway. The ESG Summit featured global experts from the International Zinc Association, ICMM, and the Minerals Council, resulting in updated ESG goal roadmaps, project ownership by COP leads, and renewed commitment to global ESG leadership. The Oncology Clinic in Springbok has been awarded to a local contractor, with construction set to begin in Q1 FY 2025-26.
VZI recorded zero fatalities in the last three quarters and achieved two years LTI-free on its projects. There were zero classified occupational diseases, zero blood lead withdrawals, and no Category 3 environmental incidents in Q4. However, injury frequency increased in Q4 with 4 LTIs reported, and frequency rates were: LTIFR 1.78 (vs BP 1.00), TRIFR 4.91 (vs BP 3.10), and AIFR 2.14 (vs BP 1.55). VZI secured ISO 45001 certification and completed the EY Sustainability Assurance Audit with improved efficiency and fewer data integrity findings on Enablon. The VZI Clinic was awarded Best Performing Team in South Africa by Life Health Services, and employees at BMM and Gamsberg donated 529 units of blood over the year.
