AGGENEYS, Northern Cape – The Vedanta Zinc International Gamsberg Phase 2 expansion project was officially inaugurated on 16 October at Gamsberg near Aggeneys in the Northern Cape.

This inauguration marks the official opening of a R10-billion zinc mine expansion in the Northern Cape. Officiated by President Cyril Ramaphosa, the inauguration establishes the facility as one of the largest zinc-producing operations in the world.

Valued at approximately R10 billion (around $1 billion), it ranks as one of the largest mining investments in South Africa over the past decade. This phase adds a second concentrator plant that doubles the mine’s annual ore-processing capacity from 4 million to 8 million tonnes. Annual zinc-in-concentrate production capacity increases to about 500 000 tonnes.

The expansion represents a strategic pivot towards local mineral beneficiation. Vedanta Zinc International, which has invested R89-billion in its South African operations since 2011, ultimately intends to build a local zinc refinery to further process the metal domestically. The president highlighted the project as a key step in moving South Africa beyond the raw export of minerals towards local manufacturing and value-added industrial processing.

Favourable conditions vital for future investments

“We recognise that an investment of this magnitude requires commercially viable electricity, reliable infrastructure and other enabling conditions. Government must work with Vedanta and other partners to address these requirements. Our objective must be to create the conditions in which further beneficiation investments become viable and competitive,” Ramaphosa said at the inauguration, stating that electricity must not only be available but be affordable and competitively priced.

“And municipalities must be capable of delivering reliable water, electricity, roads and other services to industries and communities.”

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Ramaphosa also said the Northern Cape is exceptionally well-positioned to become one of South Africa’s next major centres of industrial growth as it possesses extraordinary mineral resources, has some of the country’s best solar and wind energy potential, and vast land resources and opportunities for the development of new industrial, energy and logistics infrastructure.

With Vedanta as an anchor investor, the Namakwa Special Economic Zone has the potential to become a major centre for mineral beneficiation, industrial manufacturing and related economic activity. The development of the Namakwa Special Economic Zone must also be integrated with the proposed Boegoebaai port and industrial developments, and other components of the Northern Cape Industrial Corridor.

Creating opportunities for communities

“We must never lose sight of the fact that the ultimate purpose of economic development is to improve the lives of our people,” Ramaphosa said, remarking that the importance of mining must also be measured by the opportunities created for the communities that live alongside mining operations.

More than 1 500 people were employed during construction of the Phase II expansion, and the expanded operation is expected to sustain between 800 and 1 000 jobs during its operational phase.

The establishment of the JF Boeboe van Wyk Oncology Centre at the Dr Izak van Niekerk Hospital in Springbok is an important investment in the health and dignity of the people of Namakwa, reducing the burden of travelling long distances for treatment. Vedanta Zinc International was the primary private sector sponsor and funding partner for the facility, which was officially opened in February this year.

Vedanta’s investments in early childhood development, education, bursaries, skills training and water security were also commended.

Growing relationship between South Africa and India

“This occasion is also an important affirmation of the enduring relationship between South Africa and India. Our two countries are bound together by deep historical ties, common democratic values and a shared commitment to development. During the 18th BRICS Summit in New Delhi last month, we engaged Indian business leaders on expanding investment and trade between our countries.

“Today, more than 150 Indian companies have established a presence in South Africa, contributing investment, employment and industrial expertise. Vedanta stands among the important examples of this partnership,” Ramaphosa said.

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Supportive environment for productive enterprise

“Our message to investors is clear. South Africa is open for investment and we are committed to creating a more competitive, predictable and supportive environment for productive enterprise.

“We recognise that investors need policy certainty, efficient infrastructure, capable institutions and a government that responds effectively to the challenges they encounter. We are determined to provide these conditions.”

Ramaphosa urged provincial and local government leaders to continue working with business and communities to realise the full potential of this investment.

“We must be a country that does more than extract the minerals that the world needs. We must become a country that uses those minerals to manufacture the products that the world needs,” he concluded.