Vedanta to Boost Zinc Output From Namibia’s Skorpion Mine as Prices Climb
Vedanta Resources Plc (VED), the metals producer with assets from Africa to Australia, plans to boost output from its Skorpion zinc mine in Namibia to take advantage of rising prices for the stainless steel-making ingredient.
The company, based in London, aims to produce 155,000 metric tons of high-grade zinc from Skorpion this year, up from 151,688 tons in the previous 12 months, Chris Movirongo, corporate affairs and sustainable development manager, said in an e-mailed response to questions today.
Vedanta, which last year bought zinc assets from Anglo American Plc (AAL) and is now awaiting approval to take a controlling stake in oil company Cairn India Ltd., is boosting output to take advantage of rising commodity prices. Zinc, used to protect metals against corrosion, has climbed 18 percent on the London Metal Exchange since the start of June last year.
Vedanta, controlled by Indian billionaire Anil Agarwal, is searching for new zinc oxide deposits near Skorpion in an attempt to extend the lifespan of the operation beyond 2015, Movirongo said. The company’s Sterlite Industries unit paid Anglo about $707 million for Skorpion, it said on Dec. 3.
To contact the reporter on this story: Chamwe Kaira in Windhoek at ckaira@bloomberg.net
To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net
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