05 April 2022

Vedanta Board Approves Investment of ZAR 7 Billion towards the expansion of Gamsberg Mine in the Northern Cape, South Africa

Submitted by Staff Writer
Vedanta Board Approves Investment  of ZAR 7 Billion towards the expansion of Gamsberg Mine in the Northern Cape, South Africa

Board of Vedanta Ltd has approved an Investment of ZAR 7 Billion Investment towards the expansion of Gamsberg Mine to double up its production capacity in the Northern Cape Province, South Africa

The investment will enable Gamsberg mine to double its annual ore capacity from 4 million tonnes to 8 million tonnes and build another 4Mt Concentrator Plant to produce an additional ~200,000 tonnes of Zinc Metal in Concentrate. With this expansion, Vedanta Zinc International (VZI), South Africa, will become the largest zinc producer in Africa, with an annual production of ~500,000 tonnes of Zinc Metal in Concentrate.

Vedanta Chairman Mr Anil Agarwal says, "I am very pleased to see this growth investment, which shows our commitment to Northern Cape and South Africa. I  look forward to seeing this flagship Project come into production as soon as possible to make a significant socio-economic contribution to our host communities. This Project will double up current Gamsberg production and create thousands of jobs. We have witnessed unprecedented socio-economic benefits with the success of the Gamsberg phase I. "

Since its official opening and inauguration by President Cyril Ramaphosa in 2019, Gamsberg mine has been instrumental in creating employment opportunities and improving livelihoods. There are over 1,200 permanent personnel currently employed at the Gamsberg Mine. Gamsberg Phase 2 (7 billion investment) will create 1 500 - 2000 jobs at its peak during the construction phase and will create 800 - 1000 permanent jobs during operations.

"This investment approval indicates VZI's commitment to keep growing even amid a pandemic that has halted majority growth investments and threatened the survival of companies across various industries," says VZI Executive Director and CFO, Pushpender Singla. "This investment is a sign of our commitment to partnering with the Northern Cape Government. It also serves as the beginning of new business opportunities with some of the local businesses and a continuation of partnerships with other small companies in the province. In addition, this Project will form part of the Namakwa Special Economic Zone, which will contribute and grow secondary industries."

In line with the new Vedanta ESG Mission, Transforming for Good VZI focuses on delivering sustainable and responsible growth to create value for all its stakeholders. "Accordingly, during last year, in Jul 2021, we have announced an investment of ZAR 600mn into Magnetite Project. This Project will recover iron ore (magnetite) from the BMM tailings to significantly reduce tailings disposal upto 1Mt. This process will produce high-quality Magnetite with Fe grade > 65%.  The first production is expected in September of 2022. This Project will create  360 during construction and 250 permanent jobs." Adds Singla.

These investments will also see Vedanta's 'Business with Purpose' model unlock new community projects that will enable the mine to invest in better education, health and skills development programmes in the Northern Cape.

About Vedanta Zinc International 

Vedanta Zinc International (VZI) is the proud custodian of Vedanta Limited's Zinc assets in Africa. VZI is a grouping of Zinc assets located in South Africa and Namibia, owned by the 6th largest Diversified Resources Company globally, Vedanta Limited. VZI is the largest integrated Zinc operation in Africa, with a vision to be a globally renowned brand in the base metals sector and a 1Mt Zinc producer. VZI represents the most prominent Indian investment into South Africa and the largest Zinc Producer in Southern Africa.

VZI has pledged a R21 billion investment into South Africa and has successfully completed a R6 billion investment through Gamsberg Development. VZI is committed to the next phase of growth with the support of the Government of South Africa.

The BMC cluster, Black Mountain Mining (BMM) and Gamsberg Mine, represents VZI's South African operations, while the Skorpion Zinc Mining and Refining operations are in Namibia. With a staff complement of 3500 employees, VZI is one of the major employers in the Northern Cape, comprising 99% local employment.

VZI's flagship mine, Gamsberg Mine, has tripled VZI's total metal production from 75 000 tones to 300 000 tones.

Guided by the philosophy of 'Zero Harm, Zero Waste, Zero Discharge', ESG practices are at the heart of VZI's operations that are focused on delivering sustainable and responsible growth, thereby creating value for all stakeholders.