Name of the Project
Gamsberg Phase 2 expansion project.

Location
The Namakwa Special Economic Zone, in the Northern Cape, South Africa.

Project Owner/s
Vedanta Zinc International (VZI) subsidiary Black Mountain Mining (BBM).

Project Description
The project will double the Gamsberg mine’s and plant’s capacity from four-million tonnes a year to eight-million tonnes a year, increasing output from 300 000 t/y to 500 000 t/y of metal.

Potential Job Creation
The project is expected to create 2 000 to 2 500 jobs during construction and 800 to 1 000 permanent jobs upon completion, in addition to the 2 700 people already employed at the mine.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
R7-billion.

Planned Start/End Date
Construction is expected to take 18 to 22 months.

Latest Developments
Vedanta has reported that it will sell its international zinc operations to India-based unit Hindustan Zinc for $2.98-billion in cash to help consolidate the businesses and pare debt for parent company Vedanta Resources.

Hindustan Zinc will buy the assets of THL Zinc Mauritius in a phased manner from its parent over about 18 months, subject to regulatory approvals.

The operations of THL include BMM, in South Africa, and Skorpion Zinc, in Namibia.

“This transaction will improve overall synergies between the businesses, market share gains, as well as geographical diversification in a mineral-rich African continent.”

The deal is important for Vedanta’s billionaire-owner Anil Agarwal, who is aiming to simplify the corporate structure of his commodities empire and cut Vedanta Resources’ debt after a failed attempt to delist Vedanta in 2020.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
VZI, tel +27 11 685 3960 or email info@vedantaresources.co.za.
BBM, tel +27 54 983 9802.