R21bn bet pays off as Northern Cape zinc mine doubles output and keeps 1 000 jobs

The Northern Cape’s Vedanta Zinc Mine has doubled its annual ore capacity, an expansion expected to sustain up to 1 000 jobs and strengthen South Africa’s position in the global zinc industry.

President Cyril Ramaphosa officially inaugurated the Vedanta Gamsberg Phase II Concentrator Plant at Aggeneys on Friday. The expansion will lift the mine’s annual ore capacity from approximately four million to eight million tonnes, and increase its annual zinc-in-concentrate production capacity to approximately 500 000 tonnes.

Addressing the inauguration, held under the theme “Partnerships for Progress”, Ramaphosa said the project showed what happens when investment commitments are turned into productive economic activity.

“Today, we are witnessing the tangible results of that confidence. We are seeing what happens when investment commitments are translated into productive assets, employment opportunities and economic activity,” he said.

The President said Vedanta Zinc International’s commitment of approximately R21 billion at the first South Africa Investment Conference in 2018 had demonstrated confidence in the country’s economic potential. That investment drive, he said, was launched during a difficult period marked by weak economic growth, subdued investment, high unemployment and challenges in the electricity and logistics sectors.

Government has since undertaken economic reforms to improve electricity supply, strengthen rail and port operations, stabilise public finances and rebuild confidence in the economy.

“We understood then that South Africa could not achieve the growth and employment our people needed without rebuilding confidence, restoring the capability of the State and undertaking fundamental economic reforms,” Ramaphosa said.

He said government had committed approximately R1 trillion to infrastructure development over the medium term, including electricity transmission, railways, ports, water systems and roads. He acknowledged that more work remains to make electricity affordable, freight logistics efficient, and to ensure investors can obtain necessary approvals without unnecessary delays.

At the South Africa Investment Conference earlier this year, government secured commitments amounting to approximately R890 billion, including development finance commitments. The country has set a target of mobilising R3 trillion in investment over five years.

“But the true measure of success will not be the value of the commitments we announce,” Ramaphosa said. “It will be the investments that materialise, the businesses that grow and the opportunities that are created for our people.”

The Gamsberg Phase II expansion employed more than 1 500 people during construction and is expected to sustain between 800 and 1 000 jobs during operations. Ramaphosa said those opportunities were particularly important in the Northern Cape, where economic opportunities for young people remain limited, and called for mining investments to support skills development, local enterprise growth and broader economic participation.

“The people of Namakwa must not be confined to the lowest-skilled jobs in the mining industry,” he said.

More young people from the region should have the chance to become engineers, geologists, metallurgists, electricians, technicians, managers and entrepreneurs, he said. He also called for greater participation by young women in industries from which they had historically been excluded, alongside investment in apprenticeships, bursaries, training institutions and workplace learning.

“The greatest legacy of a mining investment is not only what it produces during the life of the mine. It is also the productive capacity, the skills and the economic opportunities that remain long after the mineral resources have been exhausted,” the President said.

He welcomed Vedanta’s social investment initiatives, including support for early childhood development, education, skills training and water security, and highlighted the establishment of the JF Boeboe Van Wyk Oncology Centre in Springbok, saying access to specialised cancer care closer to home could reduce the burden on patients and their families. He commended the company’s biodiversity conservation initiatives and the reported completion of the Phase II construction project without a fatality.

“No tonne of ore, no production target and no financial return can ever be worth the life of a worker,” he said.

Ramaphosa said the investment also reflected the enduring relationship between South Africa and India, whose cooperation spans trade, investment, technology, education and international relations. He noted that more than 150 Indian companies have established a presence in South Africa, contributing investment, employment and industrial expertise, and called on other Indian and international investors to recognise the opportunities available in the country.

“Our message to investors is clear. South Africa is open for investment,” he said.

He said government remains committed to creating a competitive and predictable environment for productive enterprise, while expecting investors to support decent employment, skills transfer, local industries and community development. The Gamsberg expansion, he said, demonstrated what could be achieved through cooperation between government, business, workers and communities.

This report is based on the account published by SAnews (South African Government News Agency), the government’s own news agency, at https://www.sanews.gov.za/south-africa/northern-cape-mine-propels-sas-position-global-zinc-industry. The Enquirer has not independently verified the production figures, employment numbers or investment values cited, which are stated here as the source states them.