Gamsberg project progresses to Phase 2

This R7 billion investment expansion project of VZI’s open-pit zinc mine promises to create 2 000 to 2 500 jobs during the construction phase and a further 800 to 1 000 permanent jobs during peak operations.

On 25 October 2018, Vedanta Resources pledged a total investment of R21 billion in the Gamsberg mine and associated projects at President Cyril Ramaphosa’s Annual Investment Conference. Of the R21 billion, over R6 billion was allocated towards completing Gamsberg Phase 1, which tripled VZI’s production capacity from 75 000 tonnes per annum (tpa) to 300 000 tpa and increased its staff complement to 2 700.

“The Gamsberg Phase 2 investment will positively contribute to the realisation of VZI’s vision of being a digitally advanced, integrated operation that will safely produce 1 Mtpa while focusing on cost reduction. It will also create great opportunities for small business owners in the communities of Khâi-Ma and surrounding host communities from a business partnership point of view,” says Arun Misra, CEO of Vedanta Zinc Business.

The sod-turning ceremony – led by the Premier of the Northern Cape, Dr Zamani Saul; Pushpender Singla, executive director and CFO, VZI; Abraham Vosloo, MEC: Economic Development, Northern Cape Provincial Government; Misra; and local mayors – took place where the construction of the 4 Mtpa plant will be commencing over the next 18 to 22 months. Once complete, the expansion will double Gamsberg’s ore capacity to 8 Mtpa and produce an additional 200 000 tpa of metal in concentrate.

The R7 billion investment signifies Vedanta’s commitment to Africa. In an interview with Inside Mining, Priya Agarwal Hebbar, non-executive director at Vedanta, highlights the significance of mining for developing continents like Africa. She mentions that a large part of Africa’s economic progress comes from mining and that mining activities are among the most effective ways to eradicate poverty. “We are fully committed to Africa. We continue to share a fantastic relationship with Africa. We’d love to continue to do more – as much as we possibly can,” she says.

CFO Singla says, “We have made good progress since the investment announcement three months ago. We have appointed a plant construction partner and placed an order for major equipment. In addition, we recently issued a R2.5 billion tender for a mining contract we expect to close over the next month. We are ready to start the real groundwork; the plot plan, process flow chart and the basic design are complete.”

The sod-turning ceremony took place at the plant construction site