Ramaphosa pushes mineral beneficiation to lure investment

South Africa’s push to capture more value from its mineral exports moved to the centre of the investment agenda this week, as President Cyril Ramaphosa used the official inauguration of the Vedanta Gamsberg Phase II Concentrator Plant in Aggeneys in the Northern Cape to argue that the country must stop exporting raw and semi-processed minerals and instead retain more of the economic value generated by its mineral wealth.

The numbers behind the expansion give the argument commercial weight. The Gamsberg Phase II project will double the mine’s annual ore capacity from approximately four million to eight million tonnes and lift annual zinc-in-concentrate production capacity to approximately 500 000 tonnes. That positions Gamsberg among the major zinc-producing operations globally and provides a foundation for further industrial development. More than 1500 people were employed during construction, with between 800 and 1 000 jobs expected to be sustained during operations.

Speaking at the inauguration on Friday, the President framed the expansion as an opportunity to strengthen domestic industrial capacity and establish the Northern Cape as a centre of mineral beneficiation and manufacturing. “Why should the mineral wealth beneath our soil create more industrial opportunities elsewhere than it creates here at home?” he asked. “Our ambition must be to ensure that a growing share of the value generated from our minerals remains within our economy.”

He noted that South Africa and other African countries had for too long extracted minerals for processing and manufacturing elsewhere, only to import finished products made from those same resources. “In the process, other countries have captured much of the value, the technology, the industrial capability and the employment opportunities associated with our natural resources,” he said.

The market case rests partly on demand for zinc itself. Ramaphosa highlighted that the metal is essential for galvanising steel and has applications in construction, transport infrastructure, automotive manufacturing and emerging energy technologies. South Africa, he argued, should position itself to benefit from opportunities arising from global investment in infrastructure, industrial development and the energy transition.

For investors and operators, the President’s message was that the concentrator plant should be treated as a first tranche rather than a final commitment. He welcomed Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape, which would enable the country to move from producing zinc concentrate towards refined zinc metal, an investment he said could create additional opportunities for industrial production, local procurement and employment. At the same time, he acknowledged the commercial conditions that such capital would demand: further beneficiation would require commercially viable electricity, reliable infrastructure and an enabling regulatory environment. “Our objective must be to create the conditions in which further beneficiation investments become viable and competitive,” he said.

Meanwhile, the Northern Cape’s industrial ambitions were presented as a wider investment proposition. Ramaphosa said the province has the potential to become one of the country’s next major centres of industrial growth given its mineral resources, renewable energy potential, land availability and strategic position for connecting producers to export markets. He identified the Namakwa Special Economic Zone as central to this vision, with Vedanta serving as an anchor investor capable of attracting further investment in mineral beneficiation, manufacturing and related economic activity. The zone’s development, he said, needs to be integrated with the proposed Boegoebaai Port and industrial developments, Upington’s industrial and energy initiatives and other components of the Northern Cape Industrial Corridor.

“Our vision is of a province in which mineral extraction, renewable energy, industrial production and modern logistics reinforce one another,” the President said, adding that coordinated planning between all three spheres of government, state-owned enterprises and private investors is essential to ensure these developments advance as part of an integrated programme.

International capital flows also featured in the pitch. Ramaphosa said South Africa’s relationship with India provides an important foundation for expanding investment in manufacturing, energy, infrastructure, technology and mineral beneficiation. Vedanta is a major Indian multinational mining conglomerate, and the President noted that more than 150 Indian companies have established a presence in South Africa, contributing investment, employment and industrial expertise. He called on investors to support the country’s broader development objectives through skills transfer, local procurement and industrial expansion, saying government remained committed to creating the infrastructure and economic conditions needed to attract productive investment.

Beyond production and export earnings, the President said the benefits of mining should extend to quality employment, skills development, local enterprise growth and improved living conditions. He called for greater opportunities for local communities to participate in higher-skilled occupations and for local businesses to become competitive suppliers of equipment, components and specialised industrial services. He also stressed the importance of protecting the environment so that mining development does not compromise the Northern Cape’s unique ecosystems and biodiversity, and commended Vedanta’s community initiatives, including investments in education, bursaries, skills training, water security and the JF Boeboe Van Wyk Oncology Centre in Springbok.

“We want the zinc that is mined here to become the foundation of industries that manufacture here, employ here and create prosperity here,” Ramaphosa said, describing the Gamsberg expansion as the beginning of a new phase of industrial development rather than the end of the investment journey. “The Northern Cape must become known not only for the wealth beneath its soil, but for the industries, innovation and prosperity that grow above it.” He added that the country’s mineral wealth should ultimately underpin a stronger domestic industrial base, creating opportunities for businesses and communities while supporting economic growth. “We must be a country that does more than extract the minerals that the world needs. We must become a country that uses those minerals to manufacture the products that the world needs,” he said.

SAnews.gov.za