August 17 (LTIT) –While the zinc industry is poised to have a structural deficit until 2022, diversified miner Vedanta Resources’ Vedanta Zinc International (VZI) is well positioned to meet the needs of South African zinc users, says VZI and Vedanta Resources Africa Base Metals CEO Deshnee Naidoo.

“The feasibility study currently under way for Phase 2 at the Gamsberg zinc project, in the Northern Cape, (which will double its production) will assist the industry in addressing the current shortages.”

After the closure of the Zincor Refinery, in Springs, Gauteng, in 2012, South Africa is a 100% importer of zinc, Naidoo adds. The country uses between 7-million and 8-million tons a year of zinc, down from 10-million tons five years ago, as a result of the economic slowdown, reduced steel output and slowing mining activity.

In Namibia, Vedanta’s focus is on securing the future of its Skorpion Zinc operations through exploration for new sources of ore, work to expand current mined areas and the development of the Skorpion refinery to work with output from mines other than Skorpion.

Meanwhile, VZI’s Gamsberg project, part of Vedanta’s Black Mountain Mining complex, in the Northern Cape, is being commissioned, and first concentrate is expected by the end of September. The main construction activities and commissioning of the front-end ore crushing, handling and stockpiling system were completed earlier in July.

“Vedanta is conducting a feasibility study to assess the development and construction of a zinc smelter-refinery complex to process concentrates from Gamsberg,” Naidoo points out.

The scope of the feasibility study includes a review of previous work undertaken by VZI into the possibility of developing a Southern Africa Zinc Cluster that would include the Black Mountain operations (including Gamsberg), and Skorpion Zinc.

Skorpion Zinc operates an integrated zinc refinery, with a capacity of 150 000 t/y, and the potential exists to convert it to co-treat sulphide and oxide concentrates from Gamsberg and other sulphide concentrate raw materials. “Should these projects proceed, this Southern Africa Zinc Cluster has the potential to be one of the world’s largest zinc supply regions,” Naidoo enthuses.

Work is also under way to expand existing operations at Black Mountain’s Swartberg and Deeps shafts. Black Mountain, which produces zinc, lead, silver and copper, comprises the Deeps and Swartberg shafts and a processing plant, with the development of the new associated Gamsberg project close to completion.

Zinc Potential

The South African govern- ment needs to assist investor initiatives in mining, and create a stable and predict- able regulatory environment, which is critical to the “health and future” of the South African mining industry, Naidoo maintains.

“In the Northern Cape, our drive to establish a Southern African Zinc Complex of global signifi- cance could have substantial benefits for the province – but government has to come to the party,” adds Naidoo.

Vedanta Resources’ commitment to Africa – and especially to Southern Africa – is a serious and significant one, she further emphasises. Vedanta’s mining investment in Africa is at about $4-billion, around $1.7-billion of that in South Africa and Namibia.

“Vedanta sees itself as an integral part of the Southern African mining scene, and plans to remain so for a long time to come,” she emphasises.

Naidoo points out that, while a major use for zinc is galvanising, the biggest potential for the global industry lies in nontechnical applications, such as fertilisers.

There are several projects run by the International Zinc Association in China, Bangladesh and India to boost the use of zinc in fertilisers, which has the potential to add an additional 100 000 t to 150 000 t of zinc demand in the next two to three years.

“In South Africa, the biggest potential for the industry lies in solar power projects being planned to come on line in the Northern Cape, since a substantial amount of steel would be used in the construction of these projects,” she concludes.