Mining major Vedanta Ltd on Wednesday said it has incorporated a wholly-owned subsidiary, Vedanta Base Metals Ltd, to implement the demerger of its five key businesses, including aluminium and oil and gas.

“We wish to inform you that a wholly-owned subsidiary of the company, in the name of ‘Vedanta Base Metals Ltd’ has been incorporated on October 09,” the company said in a filing to the BSE.

Last month, Vedanta said it would demerge from itself five of its key businesses —
aluminium, oil and gas, steel, power, ferrous and base metals — into separate listed entities to create shareholder value.

The proposed base metal company will contain a mix of global base metal production assets, growth projects and downstream businesses which will feed directly into the supply chain for metals critical to global energy transition.

The base metals business will hold the group’s global zinc assets, which owns the Gamsberg mine in South Africa, which achieved record production of 2.08 lakh tonnes in 2023.

The Black Mountain mine in South Africa, delivered significant production growth in 2022-23, generating 65000 tonnes.

The business will also comprise Vedanta’s copper business which the company said was capable of producing more than a third of India’s copper.

Meanwhile, Vedanta on Wednesday said India Ratings and Research has downgraded its ratings for the long-term bank facilities and debt instruments.

The ratings have been downgraded to ‘IND AA-’ from ‘IND AA’, Vedanta said.