Aggeneys:Northern Cape President Cyril Ramaphosa has urged South Africa to advance beyond exporting raw and semi-processed minerals, emphasizing the need for enhanced local processing and manufacturing. He asserted that the country should capture more economic value from its mineral resources.
According to South African Government News Agency, President Ramaphosa made these remarks during the inauguration of the Vedanta Gamsberg Phase II Concentrator Plant in Aggeneys. He highlighted the expansion as an opportunity to bolster domestic industrial capacity and establish the Northern Cape as a hub for mineral beneficiation and manufacturing.
He questioned why mineral wealth from South Africa should create more opportunities abroad than domestically, stating that the ambition must be to retain a growing share of the value generated from minerals within the local economy. The President stressed that for too long, African countries have exported minerals for processing and manufacturing elsewhere, leading to missed opportunities for capturing value, technology, and industrial capability.
The Gamsberg Phase II project will double the mine's annual ore capacity and significantly increase its zinc-in-concentrate production. This positions Gamsberg as a major global zinc producer and lays the groundwork for further industrial development. Zinc's role in various industries, including construction and energy technologies, was underscored by Ramaphosa, who sees South Africa benefiting from global infrastructure investments and energy transitions.
The Northern Cape's potential as a major industrial growth center was highlighted, owing to its mineral resources, renewable energy prospects, and strategic location. The Namakwa Special Economic Zone was identified as central to this vision, with Vedanta as an anchor investor. President Ramaphosa emphasized the need for coordinated planning among government levels, state enterprises, and private investors to advance these developments.
Vedanta's plans to establish zinc smelting in the Northern Cape were welcomed, with potential benefits for industrial production and local employment. However, success in beneficiation depends on reliable electricity, infrastructure, and a supportive regulatory environment. Ramaphosa asserted the Gamsberg expansion should mark the start of a new industrial development phase.
During the Gamsberg Phase II construction, over 1500 people were employed, with future operations sustaining 800 to 1,000 jobs. Ramaphosa called for more opportunities in skilled occupations for local communities and competitive local businesses.
He also stressed the importance of environmental protection and praised Vedanta's community initiatives, including investments in education and health.
Strengthening international partnerships, especially with India, was highlighted as crucial for expanding investments in various sectors. With over 150 Indian companies operating in South Africa, Ramaphosa invited investors to contribute to the country's development goals through skills transfer and local procurement.
In conclusion, President Ramaphosa emphasized that South Africa's mineral wealth should underpin a robust domestic industrial base and facilitate economic growth, advocating for a transition from merely extracting minerals to utilizing them in manufacturing essential global products.