President Cyril Ramaphosa has called for South Africa to move beyond exporting raw and semi-processed minerals towards greater local processing and manufacturing, saying the country must retain more of the economic value generated by its mineral wealth.
Speaking at the official inauguration of the Vedanta Gamsberg Phase II Concentrator Plant in Aggeneys in the Northern Cape on Friday, President Ramaphosa said the expansion is an opportunity to strengthen domestic industrial capacity and establish the province 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?
“Our ambition must be to ensure that a growing share of the value generated from our minerals remains within our economy,” the President said.
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.
President Ramaphosa said the country must expand its refining, smelting and manufacturing capacity, while supporting local suppliers, engineers, artisans, entrepreneurs and technology companies.
“We must become a country that adds greater value to its mineral resources through processing, refining, manufacturing and technological innovation,” the President said.
The Gamsberg Phase II expansion will double the mine’s annual ore capacity from approximately four million to eight million tonnes and increase its annual zinc-in-concentrate production capacity to approximately 500 000 tonnes.
The expansion positions Gamsberg among the major zinc-producing operations globally and provides a foundation for further industrial development.
President Ramaphosa highlighted that zinc is essential for galvanising steel and had applications in construction, transport infrastructure, automotive manufacturing and emerging energy technologies.
He added that in that regard, South Africa should position itself to benefit from opportunities arising from global investment in infrastructure, industrial development and the energy transition.
Northern Cape industrial ambitions
The President said the Northern Cape boasts 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 development of the zone, 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,” he said.
President Ramaphosa said 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.
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.
Such an investment could create additional opportunities for industrial production, local procurement and employment.
However, he acknowledged that 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,” President Ramaphosa said.
The President said the Gamsberg expansion should therefore mark the beginning of a new phase of industrial development rather than the end of the investment journey.
“We want the zinc that is mined here to become the foundation of industries that manufacture here, employ here and create prosperity here,” he said.
Jobs, skills and local businesses
President Ramaphosa emphasised that the benefits of mining should extend beyond mineral production and export earnings to include quality employment, skills development, local enterprise growth and improved living conditions.
More than 1500 people were employed during construction of the Gamsberg Phase II expansion, with between 800 and 1 000 jobs expected to be sustained during operations.
The President 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.
Furthermore, he highlighted the importance of protecting the environment and ensuring that mining development did not compromise the Northern Cape’s unique ecosystems and biodiversity.
He commended Vedanta’s community initiatives, including investments in education, bursaries, skills training, water security and the JF Boeboe Van Wyk Oncology Centre in Springbok.
Building on international partnerships
The President said South Africa’s relationship with India provided an important foundation for expanding investment in manufacturing, energy, infrastructure, technology and mineral beneficiation.
Vedanta is a major Indian multinational mining conglomerate.
He noted that more than 150 Indian companies had established a presence in South Africa, contributing investment, employment and industrial expertise.
President Ramaphosa called on investors to support the country’s broader development objectives through skills transfer, local procurement and industrial expansion.
He said the government remained committed to creating the infrastructure and economic conditions needed to attract productive investment.
“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 said.
President Ramaphosa said 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
