The Hindu Business Line : Vedanta unveils plan to invest $700 m in two projects

The two projects are the $300-million 170,000 tonnes a year zinc expansion at Chanderiya, due in early 2008, and a $ 400-million deep mining project at Konkola, due in 2009.

Construction of the Chanderiya smelter will commence in early 2006.

The expansion will include investment in a further 77 MW of capacity at the existing thermal power plant.

"The internal resources of Hindustan Zinc Ltd are sufficient to finance the project. The expansion will further improve Vedanta's already globally competitive cost position and increase total capacity to around 570,000 tonnes a year," the company said in a release.

The board has also approved the Konkola Deep Mining Project in a bid to increase output from the Konkola Copper Mines and extend the existing mine life.

"This project realises the potential of one of the world's most important copper deposits, with 215 million tonnes of resources at 3.8 per cent copper, and will sustain the viability of the Zambian copper industry. Copper output at the mine will be brought up from two million tonnes a year to six million tonnes," the release said.

The company said that it has received all Government approvals for the Konkola deep mining project.

"The project is due for completion in late 2009, with some production ramping up over the preceding years, and will include the sinking of a new shaft and construction of an additional three million tonnes a year concentrator, at a budget of $400 million," the release added.

The Konkola deep mining project will be financed through a combination of internal accruals and debt.

This project will take total finished copper capacity at Konkola Copper Mines to 350,000 tonnes a year and the combined capacity of the group to over 650,000 tonnes.

"These major capital projects begin the second stage of our expansion programme and reinforce our unique growth profile," the release said, quoting Mr Anil Agarwal, Chairman.

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