EXCLUSIVE: Vedanta to fund $9bn expansion from cash flow
The Indian resources group plans aggressive growth at home and in SA, says CEO Srinivasan Venkatakrishnan
Diversified Indian resources group Vedanta will use operating cash flow to fund more than $9bn in growth in India and SA over the next three to five years, says CEO Srinivasan Venkatakrishnan. Vedanta, which has a $400m zinc mine in SA and plans to invest $1.2bn in expanding the facility and building a smelter and refinery, would invest heavily in India's energy and minerals sector, using strong cash flow from its broad range of businesses, said Venkatakrishnan, who was CEO of AngloGold Ashanti. “The growth potential in Vedanta is phenomenal and the cash generation coming from the business is great, particularly in zinc and silver,” he said in an interview. Vedanta produces a million tons of zinc a year from its mines in India and SA and 700 tons of silver from its Hindustan Zinc mine. “This amount our chairman is talking about is going to be spent over three to five years,” said Venkatakrishnan. “We’ll never put the balance sheet at risk. Ultimately, it’s about what is affordable a...
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