WeeklySA_AdminCOMMITMENT: Vedanta’s multibillion-rand zinc mining expansion in the Northern Cape signals confidence in South Africa’s economy, with President Cyril Ramaphosa calling for the country’s mineral wealth to drive local manufacturing and employment….
By Monk Nkomo
A multibillion-rand expansion of the Gamsberg zinc mining operation, expected to sustain between 800 and 1 000 jobs, was officially inaugurated in Aggeneys in the Northern Cape this week.
Speaking at the inauguration of Vedanta’s Gamsberg Phase II concentrator plant, President Cyril Ramaphosa said the occasion celebrated an investment that had moved from commitment to construction, and from construction to production.
The operation is run by Vedanta Zinc International, part of the Vedanta Resources group, which committed approximately R21 billion to investment in South Africa. Ramaphosa described the commitment as an important endorsement of the country’s economic potential.
The jobs being created were particularly significant in a province where economic opportunities, especially for young people, remained limited, he said. More than 1 500 people were employed during construction of the Phase II expansion.
Ramaphosa also commended the company’s investments in early childhood development, education, bursaries, skills training and water security.
“The multi-billion rand investments by Vedanta tells an important story about South Africa. It is a story of confidence in our country’s future and a story of resilience in the face of economic challenges. It is also a story of the economic possibilities that exist when we harness our mineral wealth, our industrial capabilities and the talents of our people.”
He said Vedanta had recognised that South Africa’s economic difficulties were not insurmountable and had chosen to become part of the effort to overcome them. The expansion demonstrated the tangible results of that confidence.
The project positioned Gamsberg among the world’s major zinc-producing operations and reinforced South Africa’s standing as an important producer of the industrial mineral. It was an achievement of which Vedanta, its employees, contractors and partners could be justifiably proud, he said.
Ramaphosa recalled visiting the Northern Cape in 2019 to officially open the first phase of the operation, marking the beginning of an ambitious investment in the future of the province and the country.
“Today, seven years later, we have returned to witness another important milestone in that journey. We have come to inaugurate a major expansion of one of the most significant zinc mining operations on the African continent.”
He said the national investment drive, launched in 2018, had begun at a particularly difficult moment in South Africa’s economic history.
“We were emerging from a period of State capture that had weakened important public institutions, undermined confidence and damaged our economy. Our electricity system was under severe strain. Our railways and ports were becoming increasingly inefficient.”
It was against this difficult backdrop that Vedanta demonstrated its confidence in South Africa.
At the first South Africa Investment Conference in 2018, Vedanta Zinc International was among the companies that made substantial commitments to the investment programme. Its pledge of approximately R21 billion was an important endorsement of the country’s economic potential, Ramaphosa said.
Over the past several years, government had undertaken far-reaching economic reforms to address constraints on investment and growth.
Ramaphosa said substantial progress had been made in overcoming the electricity supply crisis. Government had also introduced fundamental changes to the structure of the electricity industry, opening the way for greater competition, new investment and a more secure and sustainable energy future.
Work was under way to improve the performance of railways and ports, alongside reforms to enable greater private-sector participation in freight logistics.
Government had also taken steps to stabilise public finances, rebuild critical institutions and restore the credibility of economic governance.
“We are also embarking on an extensive programme of public infrastructure investment. Government has committed approximately R1 trillion to infrastructure development over the medium term. Our intention is to modernise and expand the infrastructure on which economic development depends.”
Ramaphosa said municipalities must be capable of delivering reliable water, electricity, roads and other services to industries and communities.
The task was to translate progress in stabilising the economy into sustained higher growth, industrial expansion and large-scale employment creation. Investments such as Gamsberg Phase II would help the country achieve this.
“South Africa must progressively move beyond being primarily a producer and exporter of raw and semi-processed commodities. We must become a country that adds greater value to its mineral resources through processing, refining, manufacturing and technological innovation. Zinc is a particularly important mineral in this regard.”
Ramaphosa also acknowledged the contribution of Indian companies to South Africa’s economic development. More than 150 Indian companies had established a presence in the country, contributing investment, employment and industrial expertise. Vedanta was an important example of this partnership, he said.
“We must build a South Africa in which our mineral wealth becomes the foundation of industrial wealth. A South Africa in which investment becomes employment, production becomes prosperity, and economic growth becomes a better life for all.”
He challenged the country to ensure that its mineral resources generated greater industrial opportunities at home.
“Why should the mineral wealth beneath our soil create more industrial opportunities elsewhere than it creates here at home? We want the zinc that is mined here to become the foundation of industries that manufacture here, employ here and create prosperity here.”
