Vedanta Group targets major capacity expansion, commits $5 billion to oil over 5 years

Vedanta Group to triple zinc and lead production

Under the Vedanta group’s 3P plan, the first phase, which is ‘Produce’, will include tripling zinc and lead production to 3 million tonnes by 2031. The plan also comprises doubling silver output to 1,500 tonnes and increasing copper production to 1 million tonnes by the end of the decade. 

Agarwal outlined that ferchome capacity will be raised to 500,000 tonnes by FY2028, while nickel production is expected to increase to 60,000 tonnes. The strategy also includes accelerating Vedanta’s exploration across its ten critical mineral and strategic mineral blocks, including lithium, cobalt, gold, copper, nickel, manganese, rare earths, and potash.

The chairman said that the group’s entity, Vedanta Aluminium.”..We will double our capacity to 60 lakh tonnes per year at the lowest cost in the world,” Agarwal said in a statement. 

Vedanta to spend $5 billion in oil entity

He added that Vedanta Oil aims to increase production to 500,000 barrels per day. “To achieve this target, we will invest five billion dollars over the next three to five years,” Agarwal said. 

For Vedanta Iron and Steel, the chairman said its production will ramp up to 15 million tonnes from 4 million tonnes, and this will focus on green and speciality steel. Finally, for Vedanta Power, Agarwal said that the company aims to expand to 20,000 MW and foray into nuclear power.

Vedanta share price

Vedanta ended Tuesday’s trade on NSE at Rs 267.70, down nearly 1% from its previous close. Vedanta Iron and Steel closed the trade session at Rs 35.07, declining around 4% from its Monday’s close. 

The group’s oil and gas vertical ended the trade at Rs 37.82, down 3% from its previous close, while its aluminium wing ended the trade in the green, up 1% from its previous close at Rs 454.70. Vedanta Power treading near its 52-week low, ended today’s session at Rs 40.04, down 3% from yesterday’s close.