Vedanta plans to increase zinc production in Africa
Diversified natural resources company Vedanta is planning to expand its zinc operations in Africa in the light of a constant rise in the price of zinc. The price of the metal has risen to its highest level in a decade on the back of a supply shortfall, following a long period of under investment by miners.
The surge in the zinc price to its highest level since 2007 has resulted in greater overall profits for Vedanta. The company has zinc projects in India, South Africa and Namibia. It is also exploring possibilities to launch a joint venture to develop zinc operations in Ireland, where the company already holds licenses. The metal is used to galvanize steel and potentially can be used in batteries has recorded a shortfall in the markets, which is likely to continue in the current year as well.
Following the news about the company’s expansion plans, the share price of Vedanta surged on bourses on Tuesday. The stock surged to an intraday high of Rs. 328.50 per share, up by 2.60 per cent on BSE on Tuesday. It touched an intraday low of Rs. 320.25 per share on BSE.
The stock had hit its 52-week high of Rs. 355.70 per share on January 29, 2018 and its 52-week low of Rs. 217.95 per share on May 5, 2017 on BSE, respectively. At 1048 hours IST, the stock was trading at Rs. 325.70 per share, higher by 1.73 per cent on BSE on Tuesday.