Northern Cape Business 2019/20 edition

Gamsberg was offi cially inaugurated by
President Cyril Ramaphosa and Vedanta
Chairman Mr Anil Agarwal on 28 February 2019.
Vedanta anticipates that Phase 1 of Gamsberg
will be at full production by mid-2019.
Gamsberg’s development forms part of
Vedanta’s long-term commitment to the
development of the Northern Cape. Vedanta is
one of the largest private sector employers in the
province and the construction of Gamsberg has
had a meaningful impact on the local economy.
WHAT WE ARE WORKING TOWARDS
Now that Phase 1 of Gamsberg – representing an
investment by Vedanta in South Africa of US$400 million –
is officially opened, and is working towards full production,
Vedanta is focusing on Phase 2, and the potential for a
smelter-refi nery complex. Phase 2 would see a larger pit
and a second plant stream, increasing ore production to
8 million tons and concentrate to 450 000 tons per annum.
It would represent a further investment of around
US$350 million.
Vedanta is currently assessing the feasibility of developing
a smelter-refi nery benefi ciation complex – which would
be a direct capital investment of US$800 million. This
benefi ciation complex will have a wider regional and even
national impact, creating industrialisation and employment
(estimates suggest construction will create around
4 000 jobs). The complex would be the fi rst integrated
zinc manufacturing facility in South Africa, and the largest
on the continent.
Vedanta is looking at a range of options to make
the complex a reality. These include:
• Building the complex at Gamsberg in the Northern
Cape – this would have a signifi cant spillover and
multiplier effect – a fertiliser industry, the potential to
accelerate the region’s agricultural activities, a possible
agro-processing industry, and the need (and potential)
for both solar and wind power. Vedanta is working with
government to create a Special Economic Zone which
would support and stimulate this vision.
• Building the complex at a port – Port Nolloth,
Saldanha Bay or Richards Bay – this would signifi cantly
decrease logistics costs, unlock wider economic
opportunities, and position the complex as one of the
top port-based smelters in the world.
The development of Gamsberg Phase 2 will create benefi ts
for communities and for South Africa as a whole. Vedanta’s
estimates suggest that the project phase will generate a