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Enhancing Capacity and Economic Impact - Gamsberg Concentrator Phase 2

Spearheading the transformative Gamsberg Phase 2 project, reflecting Vedanta’s commitment to sustainable mining and operational excellence. This initiative entails the expansion of Gamsberg’s mining capacity to double and the construction of a new Concentrator plant, reinforcing the Company’s dedication to advancing mineral processing capabilities while fostering economic growth and job creation.

Problem Statement

Boasting a massive resource base of Gamsberg mine, Ghamsberg Phase 2 presents a significant expansion opportunity. However, its ambitious scope necessitates careful coordination of various activities, including the expansion of mining operations, construction of a new concentrator plant, and the establishment of critical infrastructure like a new tailings dam, power transmission lines, and water reservoirs. Successfully navigating these complex logistical challenges will be crucial to unlocking the full potential of this large-scale mining project.

Our Solution
  • Conceptualised an EPC (Engineering, Procurement, and Construction) approach for the Phase 2 concentrator
  • Undertaken construction of a new tailings dam, additional power infrastructure, and a water reservoir to meet increased demands
  • Initiated major long lead item orders, to be freely issued to the EPC Business Partner for erection and commissioning
  • Ensured completion of civil works in key process areas, facilitating the installation of equipment and structures

Way Forward

  • Continue equipment deliveries, targeting completion by first quarter of FY 2024-25
  • Execute remaining construction phases, addressing the external water and power needs
  • Advance construction progress with a specific focus on completing the wet TSF (Tailing Storage Facility) components
  • Monitor and address any unforeseen challenges in construction progress

Progress

53%

Overall project completion

100%

Engineering work completed

96%

Procurement work has been done

US$ 466 million

CAPEX incurred for the project

Project Impact

Double the annual ore capacity of Gamsberg, from

4 MTPA to 8 MTPA

Is set to achieve from this project

200 kt of MiC

(Mineral in Concentrate) Anticipated future annual production

2,000-2,500 jobs

Expected job creation during the construction

1,800

People employed including inhouse and business partners

Breakthrough in Reduction Cell Lining Design

Vedanta Aluminium has achieved a groundbreaking advancement in the design of reduction cells (pots) at its Jharsuguda smelter. The patented “Vedanta lining design” significantly improves energy efficiency and extends the lifespan of smelting pots, aligning with the Company’s commitment to self-reliant sustainable production and environmental, social, and governance (ESG) goals.

Problem Statement

Primary Aluminium production is energy-intensive, necessitating a focus on reducing power consumption for sustainable practices. The Company faced the challenge of optimising energy efficiency in the smelting process to meet ESG commitments and enhance overall operational sustainability.

Our Solution
  • Conducted a detailed model of existing pots and busbar networks to identify potential opportunities for improvement
  • Utilised existing assets with added insulation to maintain superior thermal balance and prevent electrolytic bath material infiltration
  • Implemented copper inserts to diminish electrical resistivity and horizontal current components, enhancing overall conductivity
  • Employed a unique cold sealant, distinguishing the lining design from other solutions in the market

Way Forward

  • Installed 150 pots with the lining design
  • Commenced a comprehensive scale-up process, aiming to achieve full production capacity

Targets

250 kWh/t

Estimated power reduction target

0.432 million tCO2e

Annual GHG emission reduction target on full-scale implement

US$ 19.9 million

Estimated cost savings target on full-scale implement

16 kt

Volume increment target on full-scale implementation

Monetising the Jaya Field

Cairn, a prominent player in the Oil and Gas industry, has set course to monetise Jaya field (OALP CB/ONHP/2017/2 block) to cater the nation’s energy demand. Overcoming regulatory, market, and technological challenges, Cairn aimed to transform the Jaya field’s potential into a lucrative revenue stream.

Problem Statement

Monetising the Jaya field faced challenges such as regulatory compliance, market volatility, and the need for technological adaptations. Efficiently navigating these hurdles was crucial for the Company to ensure timely and profitable returns on investment.

Our Solution
  • Commissioned a modular facility within 11 months, setting a global benchmark for drilling-to-production turnaround time
  • Addressed delayed pipeline connectivity by commissioning a CNG facility at the Jaya site, allowing for innovative and immediate gas testing through truck-mounted CNG kits
  • Commenced sales via gas pipeline on 10 August 2023, enhancing production from the Jaya field
  • Onboarded a rental facility contractor and gas buyer in December 2020 and January 2021 respectively
  • Initiated long-term testing by December 2022, utilising a first‑of‑its‑kind CNG cascade system for sales to nearby gas stations, minimising gas flaring and enabling simultaneous appraisal and monetisation

Way Forward

  • Continue enhancing production from the Jaya field, with sales through gas pipelines facilitating increased testing production
  • Address ongoing challenges related to remote site access, regulatory compliance (DGH, MoPnG, PESO, CTO, PNGRB), and ensure seamless execution

Progress

January 2023

~350 boe

Production


  • Sales through cascades

August 2023

~1,500 boe

Production


  • Sales through gas pipeline

December 2023

2,300 boe

Production


  • YME-01 well line up

India’s First All-Women Mining Rescue Team: Pioneering Safety Initiatives

In adherence to its core safety philosophy “Safety First”, Hindustan Zinc has successfully trained India’s inaugural all-women mining rescue team. This groundbreaking initiative, a testament to the company’s commitment to Safety Development Goals, aims to achieve Zero Harm in mining operations. The sevenmember rescue team underwent comprehensive training, including first aid, firefighting, and emergency response, aligning with the company’s focus on safety and sustainability.

Impact Statement

The creation of India’s first all-women mining rescue team addresses a crucial need for gender-inclusive safety measures in mining operations. This initiative pioneers diversity and contributes significantly to Hindustan Zinc’s overarching goal of achieving Zero Harm in its operational practices.

Our Approach
  • Established India’s first-ever all-women mining rescue team to bolster safety measures in mining operations
  • Conducted base training at the RRRT centre at Rajpura Dariba Complex, followed by rigorous training at the Mine Rescue Station, Nagpur
  • Aligned the initiative with the Company’s Sustainability Development Goals, emphasising the commitment to Zero Harm
  • Covered key areas such as first aid, firefighting, mine emergency scenarios, self-rescue techniques, and emergency response in the training curriculum

Way Forward

  • Continue to strengthen the capabilities of the all-women mining rescue team through ongoing training and skill development
  • Evaluate the effectiveness of the training programme through regular assessments and feedback sessions
  • Explore opportunities to replicate this pioneering initiative across other mining sites, fostering inclusivity and diversity in the mining sector
  • Actively promote the achievements of the all-women mining rescue team to inspire more women to join the mining industry

Vedanta’s Commitment to a Sustainable Future

Vedanta is steadfast in its commitment to a cleaner, sustainable future. This commitment is clearly demonstrated through our proactive execution of renewable energy projects across the Group. We have entered into power delivery agreements for approximately 1,826 MW of Renewable Energy with Serentica Renewables. As we prepare for the commissioning of the inaugural phase in the first quarter of FY 2024-25, this initiative underscores our concerted efforts to increase the renewable energy mix, achieve our sustainability goals, and direct investments towards strategic priorities.

Impact Statement

This initiative is aimed at significantly increasing the company’s share of renewable energy and reducing carbon emissions. For Hindustan Zinc, this move is pivotal in achieving the company’s Science-Based Targets Initiative (SBTi) targets, thereby contributing to a sustainable and environmentally friendly operational model.

Our Approach
  • Accelerated the project timeline for using 1,826 MW of renewable energy
  • Secured transmission connectivity to ensure seamless energy distribution
  • We have planned for phased completion, starting from 1Q FY 2024-25
  • Actively progressing with land acquisition and obtaining necessary statutory approvals
  • Established partnerships with OEM, EPC, and vendor partners to ensure construction progress at the site

Way Forward

  • We will continue the phased completion, ensuring that milestones are met for each stage of the project
  • We aim to achieve net-zero emissions by 2050, with the Board approving long-term captive renewable energy power delivery plans
  • We plan to sign more Power Delivery Agreements under our commitment to using 2.5 GW of Round-The-Clock (RTC) renewable energy power

Targets

20-25%

Renewable power share increment target

~15-20 million tCO2e

GHG emission reduction target