NORTHERN CAPE — President Cyril Ramaphosa has issued a strong mandate for South Africa to accelerate mineral beneficiation in the Northern Cape, urging a decisive shift away from exporting raw materials toward domestic processing and manufacturing.
Speaking at the official inauguration of the Vedanta Gamsberg Phase II Concentrator Plant on Friday, Ramaphosa emphasized that the nation’s mineral wealth must drive local industrial growth rather than benefiting foreign economies. He questioned why the country’s natural resources should generate industrial opportunities abroad instead of at home, arguing that a growing share of the value generated from local minerals must remain within the domestic economy.
For decades, South Africa and the broader African continent have extracted raw minerals for foreign processing, only to import expensive finished goods. Ramaphosa noted that this historical dynamic has allowed other nations to capture the technological, industrial, and employment benefits associated with the continent’s natural resources. To reverse this trend, he called for expanded refining, smelting, and manufacturing capabilities, supported by local engineers, artisans, entrepreneurs, and technology firms.
The newly expanded Gamsberg facility is central to this new industrial vision. The Phase II project doubles the mine’s annual ore processing capacity from four million to eight million tonnes, boosting zinc-in-concentrate production to approximately 500,000 tonnes annually. This massive expansion elevates Gamsberg to a major global zinc-producing operation.
Highlighting the strategic importance of zinc, the President noted its critical role in galvanizing steel, as well as its applications in construction, transport infrastructure, automotive manufacturing, and emerging green energy technologies. He argued that South Africa must actively position itself to capitalize on global investments in infrastructure and the energy transition.
The Northern Cape is uniquely positioned to become one of the country’s next major industrial hubs, driven by its abundant mineral resources, vast renewable energy potential, available land, and strategic export logistics. Ramaphosa identified the Namakwa Special Economic Zone (SEZ) as a cornerstone of this strategy, with Vedanta acting as an anchor investor capable of attracting further downstream investment. He stressed the need to integrate the SEZ with the proposed Boegoebaai Port, Upington’s industrial and energy initiatives, and the broader Northern Cape Industrial Corridor.
Welcoming Vedanta’s ambitions to establish local zinc smelting capacity, Ramaphosa noted this would successfully transition the country from producing zinc concentrate to refined zinc metal. However, he acknowledged that achieving further beneficiation requires commercially viable electricity, robust infrastructure, and a supportive regulatory environment to ensure local investments remain globally competitive.
The economic and social impact of the Gamsberg expansion is substantial. More than 1,500 jobs were created during the construction phase, with 800 to 1,000 permanent positions expected to be sustained during operations. Ramaphosa urged mining companies to prioritize local procurement, skills development, and community upliftment, ensuring that local businesses become competitive suppliers of specialized industrial services. He also emphasized the critical need to protect the Northern Cape’s unique ecosystems and biodiversity alongside mining development.
Commending Vedanta’s community initiatives, the President highlighted the company’s investments in education, bursaries, water security, and the JF Boeboe Van Wyk Oncology Centre in Springbok.
Touching on international partnerships, Ramaphosa highlighted the strong economic ties between South Africa and India. Vedanta, a major Indian multinational mining conglomerate, is part of a broader wave of more than 150 Indian companies operating in South Africa, bringing vital investment, employment, and industrial expertise to the region.
Concluding his address, Ramaphosa reiterated that the ultimate goal is to build a robust domestic industrial base that creates lasting prosperity for local communities.
“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,” he stated. “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.”
