Gamsberg was offi cially inaugurated by President Cyril Ramaphosa and Vedanta Chairman Mr Anil Agarwal on 28 February 2019. Vedanta anticipates that Phase 1 of Gamsberg will be at full production by mid-2019. Gamsberg’s development forms part of Vedanta’s long-term commitment to the development of the Northern Cape. Vedanta is one of the largest private sector employers in the province and the construction of Gamsberg has had a meaningful impact on the local economy. WHAT WE ARE WORKING TOWARDS Now that Phase 1 of Gamsberg – representing an investment by Vedanta in South Africa of US0 million – is officially opened, and is working towards full production, Vedanta is focusing on Phase 2, and the potential for a smelter-refi nery complex. Phase 2 would see a larger pit and a second plant stream, increasing ore production to 8 million tons and concentrate to 450 000 tons per annum. It would represent a further investment of around US0 million. Vedanta is currently assessing the feasibility of developing a smelter-refi nery benefi ciation complex – which would be a direct capital investment of US0 million. This benefi ciation complex will have a wider regional and even national impact, creating industrialisation and employment (estimates suggest construction will create around 4 000 jobs). The complex would be the fi rst integrated zinc manufacturing facility in South Africa, and the largest on the continent. Vedanta is looking at a range of options to make the complex a reality. These include: • Building the complex at Gamsberg in the Northern Cape – this would have a signifi cant spillover and multiplier effect – a fertiliser industry, the potential to accelerate the region’s agricultural activities, a possible agro-processing industry, and the need (and potential) for both solar and wind power. Vedanta is working with government to create a Special Economic Zone which would support and stimulate this vision. • Building the complex at a port – Port Nolloth, Saldanha Bay or Richards Bay – this would signifi cantly decrease logistics costs, unlock wider economic opportunities, and position the complex as one of the top port-based smelters in the world. The development of Gamsberg Phase 2 will create benefi ts for communities and for South Africa as a whole. Vedanta’s estimates suggest that the project phase will generate a
• 3 000 people employed during construction; 750 people employed for operations to date • 34% women employees • 500 – 1 000 youth in development programs • Improved education facilities for 3 000 learners, 23 students awarded tertiary bursaries (2017/18) • 45 black-owned businesses supported • 12 local businesses created –tripled in value since creation in 2015 once-off contribution to GDP of around R4.3 billion. Once operational, it should generate around R6.4 billion per annum – excluding the tax revenue it will generate. Estimates also indicate that around 12 000 direct and indirect jobs will be created. Critical success factors For all of this to happen, Vedanta is dependent on a number of key external factors, including power security at competitive tariffs, an offtake for the approximately 1 000 tons of sulphuric acid the complex will produce every day and an effi cient freight transport solution. All of this will have to be supported by and aggressive spatial development plan for the region which will allow for the development of housing and towns closest to the complex to enable a thriving community. Our communities are critical stakeholders and partners in our work. We get our social licence to mine from them, and Vedanta’s commitment has always been that we will deliver value to all our stakeholders. Corporate Social Responsibility plays a critical role in VZI’s relationships with its communities and employees. The concept of ‘Business with Purpose’ is one which we take very seriously. We are obliged to deliver returns for all stakeholders, not just to shareholders. VZI can extract value from this vision for our shareholders but more importantly facilitate value for the communities in which we operate. CSR spend for BMM overall sits at over R17.5 million so far, with over R8 million committed.
NORTHERN CAPE BUSINESS THE GUIDE TO
CONTENTS CONTENTS Northern Cape Bus