Viceroy Research claims Vedanta Zinc International's mines in Namibia and South Africa are in disrepair both physically and financially.
Despite public promotion of these assets, Viceroy alleges that Vedanta has made no meaningful investments in them.
Anil Agarwal-led Vedanta Zinc International is in the limelight as the US-based short seller Viceroy Research alleged that the company’s assets in Namibia’s Skorpion Mine and Smelter and South Africa’s Black Mountain Mine are in a poor state both physically and financially. In a 13-page report published on August 11, the short seller accused the mining giant has abandoned the sites, and despite heavy promotion, the company has made no investment.
“Viceroy’s visit to Skorpion enforces our belief that the asset is completely worthless. Management’s plans to re-start the mine and convert the smelter are pure fiction. Zinc International’s assets are severely overstated, and debt is cross guaranteed across other VEDL assets,” said the American short seller.
Viceroy Research is an investigative financial research group based in the US.
What Does the Short Seller Allege?
The two sites of Vedanta Zinc International, which have come under the American short seller’s radar, have remained inoperative since 2020 following a series of slope failures. Skorpion Complex’s book value is around $70mn, the report stated. In its 13-page report, Viceroy Research alleged that there’s no industrial power to the Skorpion site, and plans to re-establish the power supply have not come to light.
“In 2020, the mine’s wall collapsed, and the project was furloughed. Management’s assertions over 6 years that mine would be re-opened, and the project expanded to commence reproduction, have fallen flat,” the short seller alleged.
While the site has remained non-operational since 2020, “the township, which supported Skorpion workers, is heavily polluted with lead dust from the neighbouring Rosh Pinah mine”, the report stated.
The short seller claimed that it spoke to several site workers and found that they have been repeatedly told the non-operational site will restart operations next year, but nothing has changed on the ground.
“From the year they closed they are talking about opening this year coming, then opening next year,” the report mentioned.
Vedanta’s Take
Vedanta, however, refuted the allegation made by the short seller in its 13-page report and called it malicious and misleading.
"Vedanta categorically rejects the malicious and misleading allegations contained in the report. Skorpion Zinc Mine was acquired by Vedanta in 2010, at which time the remaining life of mine was estimated at just four years. Through sustained investment, rigorous exploration, and advanced geological analysis, Vedanta successfully operated the mine for a full decade, until 2020," Vedanta Spokesperson told Outlook Business. "In that year, the mine was placed under care and maintenance. This strategic pause was implemented to chart a sustainable path forward. Skorpion is currently undergoing a structured evaluation and technically supported exploration program aimed at restart," the spokesperson added.
The site in Namibia remained under care and maintenance following geotechnical instabilities in the open pit, Vedanta Limited said in its annual report for the financial year 2025.
“Skorpion Zinc remained under care and maintenance since May 2020, with restart efforts continuing,” the company said.
Namibia’s Skorpion zinc mine was acquired by Vedanta Resources in 2010 from Anglo American for about $707mn.
This isn’t the first time the Anil Agarwal-led mining conglomerate has come under the US short seller’s radar. Viceroy Research has released multiple reports on the metal-to-mining conglomerate. In its previous report, the American short seller flagged concerns regarding the shareholding pattern of the promoter Agarwal family. The short seller alleged that the Anil Agarwal-led promoter group “appears to control hidden shareholding in Vedanta Ltd and Hindustan Zinc Limited (HZL) via undisclosed fronts—the Bhadram Janhit Shalika Trust (BJST) and its subsidiary PTC Cables Pvt Ltd (PTCC)”. Additionally, the short seller said the recent AGM of Vedanta Limited held on July 10 failed to address pertinent questions, including the justification for brand fees, unsustainable dividend payments, and related-party transactions.
