Vedanta Zinc International (VZI)’s board of directors has authorized an R7-billion investment in the Gamsberg Phase 2 expansion project in the Northern Cape, which would increase mine and plant capacity from four million tons to eight million tons per year. In terms of metal, it will raise output from 300,000 to 500,000 tons per year. According to VZI executive director and CFO Pushpender Singla, this will make VZI and South Africa the largest zinc producers in Africa.
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Vedanta’s Vision with the Gamsberg Phase 2 expansion project
Vedanta is committed to generating ‘green’ zinc from this expansion to achieve emission-free status for the province. The business is in the process of securing a renewable energy contract to assure greenness and decarbonization. Singla reported that the project’s development will take 18 to 22 months and will offer considerable socioeconomic advantages to the Northern Cape, including 2 000 to 2 500 construction employment and 800 to 1 000 permanent jobs following completion. This is in addition to the mine’s existing workforce of 2 700 employees.
It will be included in the Namakwa Special Economic Zone, which the government is anticipated to approve soon and will benefit secondary industries and downstream beneficiation. Aside from the Gamsberg Phase 2 expenditure, which begins immediately, VZI authorized a magnetite project investment of roughly R600 million last year. The corporation invested R12 billion of its R21 billion investment plan three years ago.
Phase 2 of the Gamsberg Expansion Project
Phase 2 will take 18 months to build and three months to commission and ramp up. A feasibility study is now underway to establish a smelter and refining facility in Namibia, with the cost of power playing a crucial role. Underground and opencast mining activities now demand 45 MW, and Phase 2 will require an additional 25 MW, bringing the overall power consumption of the complex to 70 MW. A smelter would require another 130 MW, bringing the total required to 200 MW. The logistics of the 600-kilometer-away Port of Saldanha are considered excellent. In the absence of smelting, concentrate is transported to the Middle East, China, and Europe, with transportation capacity expanding to keep up with demand.
According to reports, Vedanta Limited is the world’s sixth-biggest diversified natural resources corporation and India’s largest natural resources firm. Vedanta Limited, which has a market value of $20 billion, has operations in India, Sri Lanka, South Africa, Namibia, Australia, and Dubai.
