(3 minutes read)
- The India based company is hiving off its Namibian operations- Skorpion Zinc in Namibia, in its recent restructuring effort so as to merge with its subsidiary company, Hindustan Zinc Limited (HZL).
Vedanta Resources and its allied ventures are undergoing a massive spin. The India based company is hiving off its Namibian operations- Skorpion Zinc in Namibia, in its recent restructuring effort so as to merge with its subsidiary company, Hindustan Zinc Limited (HZL).
The proposed transaction, which will be mostly in the form of a book transfer, is valued atUS$2.98 billion in cash. With this development, Vedanta’s 100% stake in HL Zinc Namibia and 69.6% stake in Black Mountain Mining will be merged with Hindustan Zinc Limited. Corporate analysts say that assigning the Zinc verticals with Hindustan Zinc will help consolidate Zic operations of HZL. HZL will also gain control over two major zinc operations, Skorpion Zinc in Namibia and Black Mountain Mining in South Africa.
Hindustan Zinc Limited (HZL) is an Indian integrated mining and resources producer of zinc, lead, silver and cadmium and is a subsidiary of Vedanta Resources. HZL is the world’s second largest zinc producer and is one of the world’s largest integrated producers of zinc and are among leading global lead and silver producers. Earlier, it was a Central Public company owned by the Indian state and was known as Metal Corporation of India. In 2001, the loss making company was sold to the private sector as a part of the privatization (disinvestment) drive undertaken by the Government of India.
This move will also allow Vedanta to focus on its core operations, reducing its debt and simplifying its corporate structure. The company owns approximately 65% of Hindustan Zinc, with the Indian government holding the remaining 30%. Though the HZL has been in operation in India in several places, so far it did not have any global operations. Merger of Zinc operations of Vedanta resources, would help the company to make global presence in a segment, which has promising prospects.
Read also:
https://trendsnafrica.com/fruits-nuts-annual-export-from-namibia-surged-to-n-1-4-billion-in-2022/
https://trendsnafrica.com/namibian-ict-sector-upbeat-on-new-spectrum-bands/
https://trendsnafrica.com/germany-seeks-new-energy-sources-in-namibia-and-south-africa/
Vedanta has operations in Zambia and owns a couple of copper mines, which have been caught up in a maze of court cases. The earlier dispensation in Zambia was set to take over the operations of the company and told it to pay off its liability. Now, there is a renewed thinking by the new government to hand over the operations back to the company with stringent conditions in place to regulate the operations.
