During FY 2025-26, Zinc International recorded annual production of 225 kt. The increase in production compared to FY 2024-25 was mainly higher ore treated offset by lower recovery at BMM.
Black Mountain production declined by 10% to 40 kt in FY 2025-26 due to lower tonnes hoisted and treated. Declining zinc head grades and recovery also contributed to underperformance.
Gamsberg production for FY 2025-26 is 39% higher year-on-year at 185 kt with higher tonnes treated and higher grades.
Skorpion Zinc has been under Care and Maintenance since start of May 2020, following cessation of mining activities due to geotechnical instabilities in the open pit. Activities to restart the mine are still in progress.
VZI incurred zero fatalities since the beginning of this financial year, of which both Gamsberg and Black Mountain remained fatality-free since 01 April 2024. FY 2025-26 have seen a substantial decrease in safety injury frequency rates, compared to last year as well as – with the following key frequency rates displayed: Fatalities (0), LTIFR FY 2025-26: 0.92 vs LTIFR FY 2024-25: 1.49 (38% decrease Y-o-Y), TRIFR FY 2025-26: 3.5 vs TRIFR FY 2024-25: 3.95 (11% decrease Y-o-Y).
During the reporting period, several key governance, risk, and safety initiatives were implemented to strengthen organisational performance and oversight. These included the relaunch of HSE turn-around strategy, rollout of Quarterly Executive Visible Felt Leadership (VFL) engagements, the introduction of HIPO presentations with the CEO, and the implementation of cross audits supported by Risk Champions. Strategic capability enhancements were advanced through the launch of CRM 2.0, targeted CRM masterclass training, and the hosting of the Annual Safety Day. In addition, the SWOT analysis, MUE list, and critical controls were thoroughly reviewed, alongside the completion of the ICMM assessment. External benchmarking was also conducted with SAMI peers in order to align performance with industry best practice.
Zero classified occupational disease cases have been recorded in 2026. However, a new Occupational Exposure Limit have been put in force for both lead and silica dust exposure from 0.1mg/m³ to 0.05mg/m³ respectively. This is a 50% reduction which calls for stringent control implementation and monitoring to prevent exposure of employees. An essential Dust Management Strategy have been implemented to enable vital control and reduction in over-exposures. Approximately, 65% of the milestones from the Risk Reduction Strategy Roadmap have already been implemented, a drive and focus to reduce exposure at source remains a priority.
In the new financial year, VZI will advance its safety and risk maturity through rigorous drive of the HSE Strategy, supported by the introduction of AI-enabled safety solutions. Key initiatives include the operationalisation of Critical Risk Management into daily activities, compliance with CAS Level 9, and the deployment of advanced fatigue monitoring and missing person locator systems. These enhancements will strengthen proactive risk prevention, reinforce critical control effectiveness, and align safety performance with leading industry and ICMM practices.
The VZI site recorded two (2) level 3 incidents during the last quarter of the financial year. The two incidents involved spillage of water from the Plant control pollution dam, and the return water dam by the tailings dam. A full investigation process to address shortfalls has been completed. It must be noted, however, that the spillage did not contaminate any streams, and therefore not classified as a reportable incident as per requirement by competent authority (Department of Water Affairs (DWS)). The Gamsberg phase 2 tailings dam application for the Environmental Impact Authorisation has been approved, which allows for construction of Phase 2 TSF expansion. The Water Use Licence, however, is awaiting approval based on the final review of the designs requested by the DWS. For the Gamsberg underground phase EA, the scoping and environmental management plan and report (EMPr) has been submitted to the Competent Authority and awaiting final approval. This integrated application is aligned with the previous Biodiversity offset commitments and requirements for not impacting on the set aside areas declared on Gamsberg mine.
In support of the Vedanta commitment to Net Carbon Zero by 2050, VZI has embarked on wheeling of 40 MW renewable energy from an offsite independent Power Producer. The final PPA is in final negotiations targeting sign off during Q1 of FY 2026-27.
On Biodiversity section, in collaboration with Stellenbosch University, VZI has planned conservation research includes regional mapping of the occurrence, extent of target vegetation types, species conservation concern, and also planning restoration trials using nursery material to ensure progressive biodiversity rehabilitation in the mining disturbed areas.
BMM is currently busy with a revision of the biodiversity management plan. The key component of this revision is a cumulative impact assessment at landscape, regional and footprint scale on the short for medium and long term. This will allow BMM to assess biodiversity risks at different spatial and temporal scales and clearly define the required biodiversity strategies for the operation. The biodiversity monitoring protocols will then also be revised to align with these impacts and risks and ultimately supporting the operational plans.
Together with the IUCN, BMM has initiated an integrated landscape approach (ILA) project. The ILA aims to identify other stakeholders and role players across the region (Northern Cape Industrial Corridor) in order to facilitate collaborative nature-based solutions (NbS) for ecosystem conservation while simultaneously contributing to social development in the Northern cape.
We are committed to promoting diversity in all forms at VZI. In accordance with the same, 21% of our workforce are female – with 26% of women in leadership roles. Local employment remains consistent at 98%.
VZI has received the Award for Best Company to work for, for three years in a row.
The signing to advance the Namakwa Special Economic Zone (SEZ) marks a pivotal milestone in unlocking broader regional economic growth. Through mineral beneficiation, downstream industrial development, and increased localisation, the SEZ will play a critical role in diversifying and strengthening the Namakwa District economy. This initiative positions Aggeneys, where our operations are located to evolve from a traditional mining town into a resilient, future focussed industrial hub with sustained long-term value.
Construction of the Early Childhood Development Centre in Pofadder has been completed, with an inauguration planned in the near term. The centre is expected to significantly enhance early childhood education outcomes within the Khaima municipality and forms part of our broader commitment to sustainable social investment. The facility will be supported by the planned installation of solar panels to ensure reliable, uninterrupted educational operations.
The Community Skills Centre in Pofadder is fully operational and has to date provided skills training to 524 participants.
The Social Labour Plan of FY 2025-29 has been finalised and approved by the Department of Mineral Resources – and implementation thereof commenced.
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
|---|---|---|---|
| Total production (kt) | 225 | 178 | 27% |
| Production – mined metal (kt) | |||
| BMM | 40 | 44 | (10%) |
| Gamsberg | 185 | 133 | 39% |
During FY 2025-26, total production stood at 225 kt, 27% higher Y-o-Y. This was primarily due to higher throughput and higher Zn grades, partly offset by lower zinc grades and recoveries at BMM.
At BMM, production was 40 kt, 10% down Y-o-Y. This was mainly due to lower tonnes milled, lower zinc grades and recoveries, partly offset by higher lead grades being the main contributing factors.
Production for Gamsberg was at 185 kt, 39% higher Y-o-Y. This is mainly attributable to higher tonnes treated (supported by ramp-up in waste mined to 81 MT in FY 2025-26) and higher grades, partly offset by recoveries.
Skorpion Zinc remains under Care and Maintenance since May 2020 following cessation of mining activities due to geotechnical instabilities in the open pit, resulting in slope failures. The business is currently evaluating options to restart mining.
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
|---|---|---|---|
| Overall Zinc COP including TcRc (US$/t) | 1,561 | 1,299 | 20% |
| Gamsberg Zinc COP excluding TcRc (US$/t) | 1,350 | 1,135 | 19% |
Gamsberg COP excluding brand fees increased by 19% to US$ 1,350 per tonne. The increase in the cost of production was driven by higher mining and ZAR depreciation against the US$ offset by higher zinc production.
Overall Zinc COP including TcRc increased by 20% to US$ 1,561 per tonne, from US$ 1,299 per tonne in the previous financial year. This was mainly driven by higher treatment and refining charges, higher mining and other costs and ZAR depreciation against the US$, partly offset by higher concentrate production.
(₹ crore, unless stated)
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
|---|---|---|---|
| Revenue | 4,860 | 3,918 | 24% |
| EBITDA | 1,321 | 1,321 | - |
| EBITDA margin | 27% | 34% | - |
Revenue for the year was ₹ 4,860 crore up 24% Y-o-Y, mainly due to significantly higher production. EBITDA for the year was ₹ 1,321 crore, flat Y-o-Y.
Gamsberg Phase 2 project includes the mining expansion from 4 MTPA to 8 MTPA and the Construction of a New Concentrator plant of 4 MTPA, taking the total capacity to 8 MTPA and has been approved by the Vedanta Board in Q4 of FY 2021-22.
The Phase 2 concentrator with 4 MTPA ROM processing stand-alone capacity along with mine expansion has been initially conceptualised to be awarded on an EPC basis along with major long lead items to be ordered by VZI and freely issued to EPC Business Partner for erection and commissioning.
A new tailings dam facility also needs to be constructed north of the current Gamsberg Phase 1 tailings dam. The scope also includes additional requirements for bulk services such as electricity and water. Additional Power requirement of 26.2 MVA and 19.5 km new transmission line must be constructed to the mine site. Additional water reservoir for 8.5 MLD with a clarifier also included to cater to the requirement for Phase 2.
The soil-turning ceremony, led by Northern Cape Premier Dr. Zamani Saul, Vedanta Zinc Business CEO Arun Misra, Vedanta Zinc Executive Director Pushpender Singla, MEC Economic Development Mr. A Vosloo, and Mayors, took place where the Construction of the 4 MTPA Plant is currently over 91% complete.
The status of the project is as follows:
VZI in support of the Vedanta Group ambition has adopted the ambitious goal to be water positive by 2030 focussing on the reduction of our water footprint of our current operations. Based on a water pinch point study conducted and then expanded by a water footprint assessment project pipeline for both onsite water reduction and projects within the community. Several of the community-based projects tie into the Social and Labour Plan with added benefits to the community in terms of business development and employment opportunities. Additional benefit from the descaling of the Tailings dam return water line was a significant reduction of the pool volume at the Gamsberg Tailings dam that increased the stability of the tailings dam. The water treatment plant at Gamsberg was halted and the project will be relooked at later in the next financial year. Implementation of the plant in an optimised manner will contribute to achieving the water positive target in 2030. Implementation of a large-scale invasive tree (Prosposis glanduloa, Texas Honey Mesquite) removal project implemented as a social development project will increase water availability in the surrounding water catchment over a period of the next three years.
Zinc International continues to remain focussed to improve its Y-o-Y production by sweating its current assets beyond its design capacity, debottlenecking the existing capacity, and adding capacity through growth projects. Our immediate priority is to ramp-up the performance of Gamsberg mining operations and simultaneously complete Gamsberg Phase 2 project to add another 190 kt to the total production of VZI. Likewise, BMM continues to deliver stable production performance and focus is to debottleneck its ore volumes. Skorpion is expected to remain in Care and Maintenance while management is assessing feasible & safe mining methods to extract ore from Pit 112. Zinc International continues to drive cost reduction programme to place Gamsberg operations on 1st Quartile of global cost curve with COP< US$ 1,300 per tonne including treatment charges.
Core Growth strategic priorities include the following:
