Diversified miner Vedanta Zinc International (VZI), the Northern Cape provincial government (NCPG) and the Industrial Zones Programme (IZP) of the Department of Trade, Industry and Competition held a ceremonial signing to celebrate what is expected to advance the industrialisation of the Namakwa region with the establishment of the Namakwa Special Economic Zone (SEZ).

The ceremony was held on the sidelines of the Investing in African Mining Indaba, in Cape Town, this week, bringing together VZI, the NCPG and the IZP in a collaborative commitment to advance the Namakwa SEZ.

The signing was attended by Northern Cape Premier Dr Zamani Saul, IZP executive director Lionel October and VZI deputy CEO Vijay Kumar.

“What we have heard this week is a clear call to action: when industry and government partner with purpose, we can unlock outcomes that benefit all stakeholders – from investors and employees to host communities and future generations. And that is our vision at Vedanta, to create shared prosperity for all our stakeholders,” Kumar said at the ceremony.

October pointed out that, since its inception in 2021, the IZP has supported the effective roll-out of SEZs and industrial corridors throughout the country.

“Housed at the Industrial Development Corporation’s offices, the IZP assisted with the designation of Namakwa SEZ and has deployed professionals to support the development and implementation of the SEZ beginning the process of bulk infrastructure planning and implementation,” he added.

“Through the Namakwa SEZ, and with VZI as our anchor investor, we are ensuring that the beneficiation of raw minerals becomes a reality on our own soil. This shift will transform the region’s industrial landscape and significantly contribute to our GDP,” Saul said, delivering the keynote address.

“We are in full support of this journey and are working tirelessly to ensure the operationalisation of the SEZ, including finalising bulk infrastructure designs for water, roads, and electricity. The Namakwa SEZ is an enabler for other major initiatives, such as our Green Hydrogen Strategy and the development of the Boegoebaai port,” he added.

NAMAKWA SEZ

The SEZ, planned for the Namakwa district and designated in May 2024, is envisaged as a catalyst for economic transformation in the Northern Cape and the broader Southern African Development Community region.

VZI, through its Gamsberg operations in Aggeneys, has been identified as a potential anchor investor, subject to meeting key critical success factors.

The anchor investment includes the proposed establishment of a zinc smelter, which would position Gamsberg as South Africa’s first fully integrated zinc mining and manufacturing facility.

The Gamsberg zinc smelter will be proximate to VZI subsidiary Black Mountain Mining’s openpit operation and the largest zinc project in the Northern Cape.

The Gamsberg smelter will offer refined zinc products and sulphuric acid as a by‑product.

It is expected to create jobs and offer business opportunities for various service providers including small, medium-sized and microenterprises. 

Once operational, the Namakwa SEZ is expected to support a range of industries, including manufacturing, assembly and mineral processing.

Under the governance of the Northern Cape Economic Development, Trade and Investment Promotion Agency and its multi‑sector expert board, the Namakwa SEZ endeavours to drive transformative economic growth, industrial diversification and sustainable prosperity across the region.

The combined development of the Gamsberg mine, smelter and SEZ is expected to create about 6 000 direct and indirect employment opportunities, as well as about 1 850 permanent jobs over a five-year period.

Further employment growth is anticipated through contractors, secondary industries and additional investors attracted to the SEZ.

Sulphuric acid, a key by‑product of the proposed smelter, is highlighted as presenting significant opportunities for downstream industries, including agricultural processing and fertiliser production, cleaning products, metal processing and chemical manufacturing, among others.

The development of these industries is expected to deepen mineral beneficiation, strengthen regional value chains and support long‑term economic resilience.