Vedanta expands Gamsberg zinc plant with Rs 5,757 crore investment

President Cyril Ramaphosa inaugurated Vedanta's expanded Gamsberg zinc concentrator in Northern Cape. The investment strengthens India-South Africa ties while boosting local mineral processing and employment.

In Short

• Annual ore-processing capacity will rise from four million to eight million tonnes
• Zinc-in-concentrate output capacity is expected to reach about 500,000 tonnes annually
• Over 150 Indian companies currently contribute jobs and expertise across South Africa

India and South Africa are bound by deep historical ties and shared democratic values, President Cyril Ramaphosa said while inaugurating a major expansion of a zinc mine operated by Indian conglomerate Vedanta, news agency Press Trust of India reported.

The Gamsberg Phase II concentrator plant in South Africa's Northern Cape province has been expanded with an investment of about ZAR 10 billion, or around Rs 5,757 crore, making it one of the country's largest mining investments of the past decade.

Ramaphosa inaugurated the plant in Aggeneys on Friday in the presence of Indian High Commissioner Prabhat Kumar, Consul General Ruby Jaspreet and other dignitaries.

“This occasion is also an important affirmation of the enduring relationship between South Africa and India,” Ramaphosa said at the event, according to an official statement cited by PTI.

“Our two countries are bound together by deep historical ties, common democratic values and a shared commitment to development,” he said.

Ramaphosa said the partnership between the two countries now covered trade, investment, technology, education and international cooperation. He added that the relationship had grown from their shared struggle against colonialism and oppression.

“Today, more than 150 Indian companies have established a presence in South Africa, contributing investment, employment and industrial expertise,” he said, describing Vedanta as an important example of the bilateral partnership.

The president said he had held discussions with Indian business leaders during the 18th BRICS Summit on expanding trade and investment. The talks covered manufacturing, energy, infrastructure, technology and mineral processing.

India and South Africa are members of BRICS, a grouping that promotes cooperation among emerging and developing economies in areas such as trade, investment, development finance and global governance. Its 18th summit was held in New Delhi last month.

Ramaphosa urged investors to create local jobs, develop industries, transfer skills and support surrounding communities. He said sustainable investment should generate benefits beyond returns for shareholders.

He also welcomed Vedanta's plans to establish zinc-smelting capacity in Northern Cape, South Africa's largest province. Ramaphosa said the plan would help the country move from producing zinc concentrate to refined metal.

A concentrator plant separates valuable minerals from mined ore to produce concentrated material for further processing. At Gamsberg, the zinc concentrate can be processed further to produce refined zinc metal.

The Consulate General of India in Cape Town said in a post on X on Saturday that the Phase II expansion involved an investment of about ZAR 10 billion.

Vedanta acquired the Gamsberg asset from Anglo American in 2011. Ramaphosa inaugurated the mine's first phase in February 2019. Vedanta Zinc International manages the group's zinc assets in South Africa and Namibia.

The expansion will double Gamsberg's annual ore-processing capacity from four million tonnes to eight million tonnes and raise its annual zinc-in-concentrate production capacity to about 500,000 tonnes, according to the company's website.

The expanded plant marks a major Indian investment in South Africa's mining sector, with Ramaphosa highlighting its role in strengthening bilateral economic ties, creating local benefits and increasing the country's capacity to process zinc.

With PTI Inputs

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