President Cyril Ramaphosa: Inauguration of Vedanta Gamsberg Phase II concentrator plant
Programme Director,
Ministers and Deputy Ministers,
Premier of the Northern Cape, Dr Zamani Saul,
Your Excellency Shri Prabhat Kumar, High Commissioner of India,
Executive Mayor of the Namakwa District Municipality, Ms Alinda Beukes,
Mayor of the Khâi-Ma Local Municipality, Ms Estella Cloete,
Non-Executive Director of Vedanta Resources, Ms Priya Agarwal Hebbar,
Chief Executive Officer of Vedanta Zinc International, Mr Vijay Kumar,
Traditional and religious leaders,
Representatives of organised labour,
Management and workers of Vedanta,
Members of the Khâi-Ma and Namakwa communities,
Distinguished guests,
Ladies and gentlemen,
Goeie môre. Dumelang. Molweni. Namaskar. Good morning.
It is a great pleasure to return to Aggeneys and to the Gamsberg mine.
When I was here in 2019 to officially open the first phase of this mining operation, we celebrated the beginning of an ambitious investment in the future of the Northern Cape and our country.
Today, seven years later, we have returned to witness another important milestone in that journey.
We have come to inaugurate a major expansion of one of the most significant zinc mining operations on the African continent.
We have come to celebrate an investment that has moved from commitment to construction, and from construction to production.
Above all, we have come to recognise what can be achieved when government, business, workers and communities work together in pursuit of a common purpose.
The theme of today’s inauguration, Partnerships for Progress, is therefore particularly appropriate.
This investment tells an important story about South Africa.
It is a story of confidence in our country’s future.
It is a story of resilience in the face of economic challenges.
It is a story of the enormous possibilities that exist when we harness our mineral wealth, our industrial capabilities and the talents of our people.
And it is a story that must continue to unfold, not only here in Aggeneys, but across the length and breadth of our country.
When we launched our national investment drive in 2018, we did so at a particularly difficult moment in our country’s economic history.
We were emerging from a period of state capture that had weakened important public institutions, undermined confidence and damaged our economy.
Our electricity system was under severe strain.
Our railways and ports were becoming increasingly inefficient.
Economic growth was weak, investment was subdued and unemployment remained unacceptably high.
We understood then that South Africa could not achieve the growth and employment our people needed without rebuilding confidence, restoring the capability of the state and undertaking fundamental economic reforms.
We also understood that government could not accomplish this task alone.
We needed a partnership with the private sector, with investors, with organised labour and with society as a whole.
It was in this difficult environment that Vedanta demonstrated its confidence in South Africa.
At the first South Africa Investment Conference in 2018, Vedanta Zinc International was among the companies that made substantial commitments to our investment programme.
Its commitment of approximately R21 billion was an important endorsement of South Africa’s economic potential.
Vedanta did not wait for every challenge to be resolved before investing.
It recognised that South Africa possessed enduring strengths: abundant mineral resources, a substantial industrial base, sophisticated financial institutions, skilled people and access to growing African and international markets.
It recognised that our country’s economic difficulties were not insurmountable.
And, importantly, it chose to become part of the effort to overcome them.
Today, we are witnessing the tangible results of that confidence.
We are seeing what happens when investment commitments are translated into productive assets, employment opportunities and economic activity.
This is precisely the outcome we seek from our national investment drive.
We do not pursue investment pledges merely to announce impressive figures.
We pursue investment because we want to see mines opened, factories built, infrastructure developed, businesses established and jobs created.
We pursue investment because we want to improve people’s lives.
At the South Africa Investment Conference earlier this year, we secured commitments amounting to approximately R890 billion, including development finance commitments.
Building on the achievements of our first investment drive, we have now set ourselves the ambitious target of mobilising R3 trillion in investment over five years.
But the true measure of success will not be the value of the commitments we announce.
It will be the investments that materialise, the businesses that grow and the opportunities that are created for our people.
That is why today’s inauguration is so important.
It demonstrates that South Africa is not only a country of investment opportunities.
It is a country where major investments can be successfully undertaken and brought into operation.
Over the past several years, we have undertaken far-reaching economic reforms aimed at addressing the constraints that have held back investment and growth.
We have made substantial progress in overcoming the electricity supply crisis.
We are undertaking fundamental changes to the structure of the electricity industry, opening the way for greater competition, new investment and a more secure and sustainable energy future.
We are improving the performance of our railways and ports, while introducing reforms that will enable greater private sector participation in freight logistics.
We have taken steps to stabilise the public finances, rebuild critical institutions and restore the credibility of economic governance.
We are also embarking on an extensive programme of public infrastructure investment.
Government has committed approximately R1 trillion to infrastructure development over the medium term.
Our intention is to modernise and expand the infrastructure on which economic development depends.
We are investing in electricity transmission, railways, ports, water systems, roads and other strategic infrastructure.
These reforms are essential to increasing the productive capacity and competitiveness of our economy.
Yet we know that much more remains to be done.
Electricity must not only be available. It must also be affordable and competitively priced.
Our railways and ports must not only function better. They must become efficient enough to enable our exporters to compete successfully in global markets.
Investors must be able to obtain the necessary approvals and regulatory certainty without unnecessary delays.
And municipalities must be capable of delivering reliable water, electricity, roads and other services to industries and communities.
The task before us is to turn the progress we have made in stabilising the economy into a sustained period of higher growth, industrial expansion and large-scale employment creation.
It is investments such as Gamsberg Phase II that will help us achieve this.
The expansion will double the mine’s annual ore capacity from approximately 4 million to 8 million tonnes.
Its annual zinc-in-concentrate production capacity will increase to approximately 500,000 tonnes.
This positions Gamsberg among the major zinc-producing operations in the world and reinforces South Africa’s standing as an important producer of this industrial mineral.
It is an achievement of which Vedanta, its employees, its contractors and its partners can be justifiably proud.
But the significance of this investment extends well beyond the increased volume of zinc that will be produced.
It points to something much more important for South Africa’s economic future.
It points to the opportunity to transform our mineral wealth into a foundation for industrialisation.
For too long, South Africa and many other African countries have occupied the lower end of global value chains.
We have extracted minerals from our soil and exported them for processing and manufacturing elsewhere.
We have then imported finished products made from those same minerals, often at a considerably higher price.
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.
This is a pattern that we are determined to change.
South Africa must progressively move beyond being primarily a producer and exporter of raw and semi-processed commodities.
We must become a country that adds greater value to its mineral resources through processing, refining, manufacturing and technological innovation.
Zinc is a particularly important mineral in this regard.
It is essential for galvanising steel and protecting it against corrosion.
It is used in construction, transport infrastructure, automotive manufacturing and a wide range of industrial applications.
It also has an important role in emerging energy technologies.
As countries across the world invest in infrastructure, industrial development and the energy transition, the demand for the products and applications that rely on zinc will continue to create opportunities.
South Africa must position itself to benefit from these opportunities.
We must ask ourselves a fundamental question:
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.
That means developing refining and smelting capacity.
It means attracting downstream manufacturers.
It means supporting South African suppliers, engineers, artisans, entrepreneurs and technology companies.
It means establishing industrial clusters that link mining with manufacturing, energy, logistics and other productive sectors.
And it means ensuring that our young people acquire the skills to participate in these industries.
The Gamsberg operation provides an important foundation for this transformation.
But the establishment of the Phase II concentrator must not be the end of the investment journey.
It should be the beginning of a new phase of industrial development.
We therefore welcome Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape.
Such an investment would enable South Africa to move further along the zinc value chain, from producing concentrate to producing refined zinc metal.
It would create new opportunities for industrial production, local procurement and employment.
We recognise that an investment of this magnitude requires commercially viable electricity, reliable infrastructure and other enabling conditions.
Government must work with Vedanta and other partners to address these requirements.
Our objective must be to create the conditions in which further beneficiation investments become viable and competitive.
We want the zinc that is mined here to become the foundation of industries that manufacture here, employ here and create prosperity here.
The Northern Cape is exceptionally well positioned to become one of South Africa’s next major centres of industrial growth.
It possesses extraordinary mineral resources.
It has some of the country’s best solar and wind energy potential.
It has vast land resources and opportunities for the development of new industrial, energy and logistics infrastructure.
And it is strategically positioned to link inland mineral production with export markets.
These advantages must be brought together in a coherent programme of regional industrial development.
The Namakwa Special Economic Zone is central to this vision.
With Vedanta as an anchor investor, the Special Economic Zone has the potential to become a major centre for mineral beneficiation, industrial manufacturing and related economic activity.
It must serve as a catalyst for attracting other investors and establishing a broader industrial ecosystem.
The development of the Namakwa Special Economic Zone must also be integrated with the proposed Boegoebaai port and industrial developments, the Upington 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.
A province where new mines create opportunities for factories.
Where renewable energy supports competitive industrial production.
Where improved transport infrastructure connects producers to domestic, regional and international markets.
And where the expansion of industry creates new opportunities for small businesses and local communities.
This is how we can unlock the full economic potential of the Northern Cape.
The challenge is to ensure that these projects do not remain separate initiatives, each advancing at its own pace and without sufficient coordination.
They must form part of an integrated development programme, with clear responsibilities, coordinated investment and effective implementation.
National government, the provincial government, municipalities, state-owned enterprises and private investors must work together to make this vision a reality.
We must be deliberate in our efforts to build new centres of economic activity beyond the country’s traditional industrial heartlands.
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.
We must never lose sight of the fact that the ultimate purpose of economic development is to improve the lives of our people.
The mining industry remains one of the pillars of South Africa’s economy.
It provides employment to hundreds of thousands of people, contributes significantly to national income and remains a major source of export earnings.
But the importance of mining cannot be measured only by the value of minerals extracted or the revenue earned.
It must also be measured by the opportunities created for the communities that live alongside mining operations.
It must be measured by the quality of employment, the development of skills, the growth of local enterprises and improvements in living conditions.
In this regard, Vedanta’s investment has already made an important contribution.
More than 1,500 people were employed during construction of the Phase II expansion.
The expanded operation is expected to sustain between 800 and 1,000 jobs during its operational phase.
These jobs are of immense importance in a province where economic opportunities, particularly for young people, remain limited.
They represent incomes for families, opportunities to acquire skills and the prospect of a more secure future.
We welcome Vedanta’s commitment to recruiting from local communities and developing the capabilities of people in the Northern Cape.
But we must continuously raise our ambitions.
The people of Namakwa must not be confined to the lowest-skilled jobs in the mining industry.
We want to see more young people from this region becoming engineers, geologists, metallurgists, electricians, technicians, managers and entrepreneurs.
We want to see local businesses move beyond providing basic services to becoming competitive suppliers of equipment, components and specialised industrial services.
We want to see young women entering occupations and industries from which they have historically been excluded.
We want to see investment in training institutions, apprenticeships, bursaries and workplace learning.
The greatest legacy of a mining investment is not only what it produces during the life of the mine.
It is also the productive capacity, the skills and the economic opportunities that remain long after the mineral resources have been exhausted.
This is the legacy that we must seek to build here in Aggeneys and throughout the Namakwa District.
Mining communities must be active participants in development, not passive observers of economic activity taking place around them.
Their needs, aspirations and concerns must inform the development of mining operations and the investments made in surrounding communities.
We therefore welcome Vedanta’s continuing commitment to social investment and community development.
I am particularly pleased by the establishment of the JF Boeboe Van Wyk Oncology Centre in Springbok.
This is an important investment in the health and dignity of the people of Namakwa.
For patients and their families, access to specialised cancer care closer to home can make an enormous difference.
It reduces the burden of travelling long distances for treatment and provides greater support to people during some of the most difficult moments of their lives.
This is a practical example of how a partnership between business and government can deliver a lasting benefit to a community.
We also commend Vedanta’s investments in early childhood development, education, bursaries, skills training and water security.
These initiatives must continue to grow in their reach and impact.
They must form part of a sustained effort to improve the quality of life of the communities that have welcomed and supported this investment.
We must also ensure that mining takes place in a manner that protects the environment and preserves the natural heritage of this remarkable region.
The Northern Cape is home to unique ecosystems and biodiversity that must be protected for future generations.
Mining development and environmental stewardship must go hand in hand.
We welcome Vedanta’s biodiversity conservation initiatives and its efforts to protect threatened species and important conservation areas.
We also commend the company and its workforce on the reported achievement of completing the construction of Gamsberg Phase II without a fatality and on maintaining a strong safety record.
This is an achievement that deserves recognition.
But it must never lead to complacency.
No tonne of ore, no production target and no financial return can ever be worth the life of a worker.
The health, dignity and safety of every person who works at this mine must remain the highest priority.
Ladies and gentlemen,
This occasion is also an important affirmation of the enduring relationship between South Africa and India.
Our two countries are bound together by deep historical ties, common democratic values and a shared commitment to development.
Our relationship was forged through struggles against colonialism and oppression and has grown into a partnership encompassing trade, investment, technology, education and international cooperation.
During the 18th BRICS Summit in New Delhi last month, we engaged Indian business leaders on expanding investment and trade between our countries.
We spoke of the opportunities that exist in manufacturing, energy, infrastructure, technology and mineral beneficiation.
We also recognised the contribution that Indian companies are already making to South Africa’s economic development.
Today, more than 150 Indian companies have established a presence in South Africa, contributing investment, employment and industrial expertise.
Vedanta stands among the important examples of this partnership.
Yet what is especially significant about Vedanta’s presence here is the manner in which it has become part of the economic and social fabric of South Africa.
Through its investments, its employees, its partnerships and its community programmes, the company has established roots in this country.
We welcome this commitment.
And we hope that it will encourage other Indian and international investors to recognise the opportunities that exist in South Africa.
Our message to investors is clear.
South Africa is open for investment.
We are committed to creating a more competitive, predictable and supportive environment for productive enterprise.
We recognise that investors need policy certainty, efficient infrastructure, capable institutions and a government that responds effectively to the challenges they encounter.
We are determined to provide these conditions.
At the same time, we look to investors to become partners in our broader development objectives.
We want investments that create decent employment, develop local industries, transfer skills, support transformation and contribute to the prosperity of surrounding communities.
For investment to be sustainable, it must create value not only for shareholders, but also for workers, communities and the country as a whole.
This is the foundation of the partnership we seek between government and business.
As we inaugurate this magnificent plant today, we should reflect on what it represents for the future of our country.
It represents confidence in South Africa.
It represents the determination to overcome the constraints that have held back our economy.
It represents the opportunity to convert our natural resources into greater industrial capacity.
And it represents the possibility of building new centres of economic opportunity in regions that have not yet realised their full development potential.
But we should also recognise that this achievement carries a responsibility.
The responsibility to build on what has been accomplished.
The responsibility to move beyond extraction towards greater beneficiation and manufacturing.
The responsibility to ensure that our infrastructure, energy and logistics systems support industrial expansion.
And the responsibility to ensure that the people of this region experience the benefits of development in their everyday lives.
I would like to see the day when a young person growing up in Aggeneys can complete their education, acquire advanced technical skills and find meaningful employment in a thriving local industrial economy.
I would like to see local entrepreneurs building successful businesses that supply not only this mine, but industries across South Africa and beyond.
I would like to see the Namakwa region become internationally recognised as a centre of modern mining, mineral beneficiation, renewable energy and advanced industrial production.
This is an ambition that is within our reach.
But it will require the same qualities that have brought us to this moment: confidence, perseverance, partnership and a willingness to invest for the long term.
To Vedanta Resources and Vedanta Zinc International, I extend our appreciation for your continued confidence in South Africa.
To the engineers, contractors, managers and workers who have brought this project to completion, I offer our congratulations.
To the provincial and local government leaders, I urge you to continue working with business and communities to realise the full potential of this investment.
And to the people of Aggeneys, Khâi-Ma and the greater Namakwa District, I say that the future we are building must be a future in which you share.
We must build a South Africa in which our mineral wealth becomes the foundation of industrial wealth.
A South Africa in which investment becomes employment, production becomes prosperity, and economic growth becomes a better life for all.
Why should the mineral wealth beneath our soil create more industrial opportunities elsewhere than it creates here at home?We want the zinc that is mined here to become the foundation of industries that manufacture here, employ here and create prosperity here.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.
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.
That is the opportunity before us.
That is the ambition that must drive us.
And that is the future we must build together.
It is now my honour and privilege to declare the Vedanta Gamsberg Phase II Concentrator Plant officially open.
I thank you.
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