Viceroy Research casts doubt on Skorpion Zinc restart
Doubting Thomas
Skorpion Zinc, located near Rosh Pinah in the //Kharas Region, was commissioned in 2003 by Anglo American at a cost of about US$454 million.
Viceroy Research has cast serious doubt on Vedanta Resources’ plan to restart the Skorpion Zinc Mine and Smelter, saying the southern Namibian operation, under care and maintenance since 2020, is now a defunct, dismantled asset showing “textbook” signs of decay.
Viceroy Research is a United States–based activist short-selling outfit known for publishing deep-dive investigative reports on publicly listed companies. Founded by Fraser Perring, the group has a track record of targeting firms it alleges overstate assets or misrepresent operations, often taking short positions ahead of releasing its findings. Its work has previously influenced markets and triggered regulatory scrutiny in several jurisdictions.
In its 11 August 2025 report, Viceroy said an on-site inspection found no evidence that the refinery’s conversion from oxide to sulphide concentrate processing, budgeted at US$220 million with an 18–24 month construction window, had begun. The researchers said timelines had repeatedly slipped, the site had further deteriorated, and the facility should be regarded as a rehabilitation liability rather than a restart candidate.
Declining grades
Skorpion Zinc, located near Rosh Pinah in the //Kharas Region, was commissioned in 2003 by Anglo American at a cost of about US$454 million. Acquired by Vedanta in 2010 and integrated into its Zinc International division, the open-pit mine and SX-EW refinery once produced 150 000 tonnes of refined zinc annually. But declining grades, technical issues, and pit-wall failures in 2020 halted operations.
Viceroy says the conversion plan is not credible, as oxide and sulphide processing require fundamentally different flowsheets, demanding an almost complete rebuild. The site has been without industrial power since the end of its Eskom supply contract in January 2021, with no alternative generation installed. Tanks, circuits, and ponds are dry and corroded, with no maintenance or preservation measures in place.
The mining pit, affected by multiple slope failures, is waterlogged and unsafe, with no dewatering or road repairs evident. No mobile mining equipment remains, workshops are stripped, and staffing is down to fewer than 40 part-time caretakers with no operational roles. An internal report cited by Viceroy indicates less than eight months of recoverable ore in the existing pit, insufficient to justify the restart costs.
'Unworkable'
Plans to import sulphide concentrate from South Africa’s Black Mountain/Gamsberg operations are deemed logistically unworkable, with no viable heavy-haul corridor to sustain the required trucking volumes. The report also questions asset valuations, points to encumbrances on Zinc International’s holdings, and says rehabilitation obligations remain unfunded.
Viceroy found no signs of mobilisation, procurement or hiring to support Vedanta’s FY27 reopening target.
In response, Vedanta said Skorpion Zinc was acquired with a limited mine life but operated through further investment until 2020, when it was placed on care and maintenance. The company said it is conducting structured evaluations and feasibility studies for a restart, describing Skorpion as a strategic African asset. It dismissed Viceroy’s allegations as “baseless and malicious,” accusing the short-seller of spreading misinformation to disrupt markets.
Viceroy Research is a United States–based activist short-selling outfit known for publishing deep-dive investigative reports on publicly listed companies. Founded by Fraser Perring, the group has a track record of targeting firms it alleges overstate assets or misrepresent operations, often taking short positions ahead of releasing its findings. Its work has previously influenced markets and triggered regulatory scrutiny in several jurisdictions.
In its 11 August 2025 report, Viceroy said an on-site inspection found no evidence that the refinery’s conversion from oxide to sulphide concentrate processing, budgeted at US$220 million with an 18–24 month construction window, had begun. The researchers said timelines had repeatedly slipped, the site had further deteriorated, and the facility should be regarded as a rehabilitation liability rather than a restart candidate.
Declining grades
Skorpion Zinc, located near Rosh Pinah in the //Kharas Region, was commissioned in 2003 by Anglo American at a cost of about US$454 million. Acquired by Vedanta in 2010 and integrated into its Zinc International division, the open-pit mine and SX-EW refinery once produced 150 000 tonnes of refined zinc annually. But declining grades, technical issues, and pit-wall failures in 2020 halted operations.
Viceroy says the conversion plan is not credible, as oxide and sulphide processing require fundamentally different flowsheets, demanding an almost complete rebuild. The site has been without industrial power since the end of its Eskom supply contract in January 2021, with no alternative generation installed. Tanks, circuits, and ponds are dry and corroded, with no maintenance or preservation measures in place.
The mining pit, affected by multiple slope failures, is waterlogged and unsafe, with no dewatering or road repairs evident. No mobile mining equipment remains, workshops are stripped, and staffing is down to fewer than 40 part-time caretakers with no operational roles. An internal report cited by Viceroy indicates less than eight months of recoverable ore in the existing pit, insufficient to justify the restart costs.
'Unworkable'
Plans to import sulphide concentrate from South Africa’s Black Mountain/Gamsberg operations are deemed logistically unworkable, with no viable heavy-haul corridor to sustain the required trucking volumes. The report also questions asset valuations, points to encumbrances on Zinc International’s holdings, and says rehabilitation obligations remain unfunded.
Viceroy found no signs of mobilisation, procurement or hiring to support Vedanta’s FY27 reopening target.
In response, Vedanta said Skorpion Zinc was acquired with a limited mine life but operated through further investment until 2020, when it was placed on care and maintenance. The company said it is conducting structured evaluations and feasibility studies for a restart, describing Skorpion as a strategic African asset. It dismissed Viceroy’s allegations as “baseless and malicious,” accusing the short-seller of spreading misinformation to disrupt markets.
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