Linking with the theme of this year’s Investing in African Mining Indaba – to be held at the Cape Town International Convention Centre from February 6 to 9 – zinc mining company Vedanta Zinc International (VZI) pledged a R21-billion investment to develop its Gamsberg mine, in South Africa’s Northern Cape province, and associated projects.

The company pledged the investment during the 2018 Investment Conference – held at the Sandton Convention Centre in Johannesburg, Gauteng – partnering with the South African government to achieve its vision of $100-billion in investment to drive inclusive growth and employment in the country.

To date, VZI has invested R6-billion in the Gamsberg Phase 1 project, which is currently fully operational and has created more than 1 000 jobs.

The company is also investing a further R7-billion in the Gamsberg Phase 2 expansion project, which was approved in early 2022 and is in the early stages of construction.

As the largest producer of zinc concentrate in Africa, VZI has committed investment to zinc mining and beneficiation, including the development of a zinc refinery complex, which is at the feasibility stage.

“We remain committed to investing a further R10-billion in the development and construction of the Gamsberg Zinc Smelter in the near future, subject to government support on electricity, logistics and tax. “These projects have brought about many opportunities for the development of the local and provincial economy, and for South Africa,” says VZI executive director and CFO Pushpender Singla.

With the mine, concentrator and refinery in one location, the proposed beneficiation plant will make Gamsberg the first fully integrated zinc manufacturing facility in South Africa he adds.

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VZI officially began construction of the Gamsberg Phase 2 project on August 5, 2022; the project is expected to create about 2 000 jobs during construction and about 800 permanent jobs during the peak operations phase.

Moreover, as the world’s largest undeveloped zinc resource, with the potential to produce about one-million tons of zinc a year, Gamsberg is producing 250 000 t/y, and Gamsberg Phase 2 will ramp this up to 500 000 t/y.

Once complete, the expansion will double Gamsberg’s yearly ore capacity to eight-million tonnes and produce an additional 200 000 t/y to 250 000 t/y of minimum inhibitory concentration (MIC).

“We have awarded both mining and main plant engineering, procurement and construction contracts to reputed business partners and we are making good progress on the project,” says Singla.

He adds that zinc has a positive outlook and is expected to become a critical green metal in a low-carbon economy, with global zinc mined production growing steadily, supported by high zinc prices and the resumption of operations after Covid-19.

This will result in a long-term recovery from the previously sustained contraction, with Singla anticipating the global zinc mining market size to exceed $10-billion by 2026.

He says VZI’s Deeps, Swartberg – both in Aggeneys, in the Northern Cape – and Gamsberg operations produce about 300 000 t/y of zinc MIC, with Gamsberg

Phase 2 expected to exceed 550 000 t/y of zinc MIC production by 2023/24.

“VZI is committed to establishing an integrated zinc smelter at Gamsberg to convert all the concentrate into finished metal. This will redefine our operations in the Northern Cape, which will become one of the largest integrated zinc operations globally.

“The benefits of the smelter will be felt immediately in the Northern Cape and will speak to Vedanta’s ‘business with purpose’ model, which is designed to ensure that host communities are left better off as a result of the operational investment,” concludes Singla.