Vedanta Zinc International (VZI) has noted that its N$6.5 billion Namzinc Refinery Conversion Project which would create in excess of 2000 jobs highly depends on Nampower being able to lower its tariffs to make the project practically feasible.
The successful execution of this project will result in Namibia being the only country in Africa to produce refined SHG (Special High Grade) Zinc, which, in turn, will make Namibia a net exporter of Zinc metal.
The company noted that it is confident to feed the refinery from its existing oxide pit and sulphide concentrate feed from its Gamsberg operation after it converts and expands the refinery to treat sulphide concentrate. The conversion project would expand the current refinery capacity from 150 000t of metal to 300 000t.
“We are fully committed to seeing this plan through. However, the refinery requires reduced electricity tariffs from energy company NamPower to be economically feasible. There are great mining investment opportunities in Africa, and Vedanta remains committed to unlocking some of them, but government support remains key for us,” says says VZI Executive Director and CFO Pushpender Singla.
Notably, the company recently announced plans to sell Skorpion Zinc in Namibia as part of a larger disposal of its international zinc operations.
The refinery is also expected to contribute significantly to the local community. The production capacity is planned at 150KT per annum, with a plan to expand to 300KT per annum with the introduction of latest technology and required modifications and additions to the existing processing plant.
Significant work has been put into the Refinery Conversion project, including the finalisation of the bankable feasibility study. Once construction is completed, the refinery is to process zinc concentrate from Gamsberg South Africa and add value in Namibia, and then export the refined product not only to South Africa but elsewhere in SADC and beyond.
The refinery will potentially beneficiate zinc concentrates from local Zinc mines in Namibia and then export the refined product.
INVESTING IN AFRICA
In line with the African Mining Indaba theme of 2023, ‘Unlocking African Mining Investment’, Vedanta Resources pledged a N$21-billion growth investment in South Africa for the development of the Gamsberg mine with beneficiation near Aggeneys in the Northern Cape, and associated projects.
This commitment was made during the inaugural South Africa Investment Conference in 2018 to partner with the government to achieve its vision of a US$100-billion investment to drive inclusive growth and employment in the country.
Vedanta has obliged to this commitment with an investment of N$6-billion into Gamsberg Phase I which is now fully operational and has created more than 1 000 direct jobs. In addition to this, a new investment of
N$7-billion into the Gamsberg Phase II expansion project was approved in early 2022 and is currently in the early stages of construction. This project will create 2 000 to 2 500 jobs during the construction phase and 800 jobs during the operation phase. The company remains committed to investing a further
N$10-billion into the development and construction of the Gamsberg zinc smelter in the near future, subject to economic viability. This investment forms part of the N$21-billion pledge.
“Vedanta Zinc International’s (VZI’s) investment has created significant socio-economic benefits and transformed the local and provincial economy, as well as South Africa,” says Singla.
Being the largest producer of zinc concentrate in Africa, VZI had already committed significant investment into zinc mining and beneficiation. The company is committed and has plans for setting up a zinc refinery complex in South Africa, which is now at the feasibility stage. The proposed beneficiation plant will make Gamsberg a fully integrated zinc production site, with the mine, concentrator plant, and refinery complex at a single location – making it the first fully integrated zinc manufacturing facility in South Africa.
Vedanta’s ‘Business with Purpose’ model, which is designed to ensure that host communities are left better off as a result of the operational investment, remains one of VZI’s key focus areas. To date, Vedanta has invested over US$1.7-billion in Southern Africa, and contributed over N$65-million in corporate social responsibility projects in South Africa and Namibia over the last nine years. Childcare and education support programmes benefit more than 1 800 children at an average cost of R6-million a year. In South Africa, the company’s social projects are aimed at skills development, livelihoods, education, health, enterprise development, and municipal infrastructure support. The company also supports various youth and sports clubs as part of its corporate social investment.
In line with Vedanta Group’s vision of ‘Transforming For Good’, environmental, social and corporate governance is the key focus for the company to transform its communities, transform its workplace and transform the planet. The company is fully focused on robust community programmes to serve 100% of their host communities, create the best workplace for their employees and develop a fully green energy solution to reduce carbon emissions to nil.
“It is our wish and intention that our investment and activity in South Africa specifically represents far more than the simple influx of capital into developing and operating a mining asset,” says Singla.
VZI’s medium- to long-term goals are to increase production from 300 000 t/y to one-million tons a year, with local beneficiation making the company a fully integrated zinc producer.
Singla says investment in South Africa will allow for an influx of capital into developing and operating mining assets, in addition to socioeconomic benefits for the wider municipal and provincial communities, as well as the provincial and national fiscus.
“Environmental, social and corporate governance is the key focus for us to transform our communities, transform our workplace and transform our planet accordingly. “We are fully focused on robust community programmes to serve 100% of our host communities, create the best workplace for our employees and develop a full green energy solution to reduce carbon emissions to nil.”
Moreover, he adds VZI aims to ensure that more women are represented in the mining industry, with 19% of VZI’s current workforce comprising women. The company hopes to increase female representation across management by 40% by 2025, and 50% across management by 2035.