Vedanta – THL Zinc Valuation

Author: Viceroy Research Published on: August 22, 2025 Published in: Vedanta (NSE:VEDL)

August 22, 2025 – We have previously highlighted valuation concerns in Vedanta Limited’s (VEDL) International Zinc operations, with earlier reports detailing the operational failures at the Skorpion Complex in Namibia and Black Mountain Mine (BMM) in South Africa.

We believe the International Zinc segment represents a collective $783m impairment across BMM and Skorpion.

The THL Group has raised $600m in equity and $782m of debt since FY23.
This is almost 3x the amount needed to complete just the $466m Gamsberg Phase 2 project, and more than double the combined cost of Gamsberg phase 2, the $200m Skorpion smelter conversion, and the $37m Gamsberg Magnetite plant.
Instead of being invested, most of the capital was siphoned upstream through the redemption of VEDL’s OCRPS. These notes were originally issued for THL Zinc Ventures to finance the Skorpion acquisition. In effect, VEDL has redeemed its own paper linked to Skorpion’s purchase financing, even as Skorpion itself collapses into insolvency.
As a result, every major project remains stalled:
- Gamsberg Phase 2 has been delayed for 4 years and is still only 68.5% completed.
- The Skorpion conversion project has not begun, nor is it technically or operationally feasible.
- The Magnetite plant is 10 years behind schedule.

To avoid recognizing material impairments, VEDL must begin honestly funding its International Zinc projects, despite their delays, cost overruns, and lack of economic viability. VEDL has neither the capacity nor willingness to do so.

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