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Vedanta invests nearly US$600mn in Gamsberg Phase II, doubling South African zinc capacity to 500,000 tonnes annually.

Vedanta Limited, the flagship company of the Vedanta Group, has announced the doubling of annual zinc production capacity at its South African zinc operations to 500,000 tonnes¹

The expansion involves an investment of nearly US$ 600mn in Phase II of the Gamsberg project, operated by Vedanta Zinc International (VZI). The expanded facility was inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar.

Located in South Africa’s Northern Cape province, Gamsberg is VZI’s flagship zinc mine and hosts one of the world’s most significant zinc deposits. The expansion represents one of the largest mining investments in South Africa during the current decade.

The project further reinforces Vedanta Limited’s position as the world’s largest² zinc producer, supporting its ambition to achieve annual production of 3 million tonnes across India and South Africa. Of this target, 2 million tonnes are expected to come from its subsidiary, Hindustan Zinc Limited (NSE: HINDZINC; BSE: 500188), the world’s largest integrated zinc producer, while Vedanta Zinc International aims to contribute 1 million tonnes annually.

With zinc playing a crucial role in modern industrial and infrastructure development, global consumption continues to rise. Through galvanisation, zinc protects steel, the world’s most widely used metal, against corrosion, prolonging its lifespan and enabling its use across construction, automotive, manufacturing and other industries. Together, Hindustan Zinc and Vedanta Zinc International strengthen Vedanta Limited’s ability to meet the increasing global demand for zinc.

The Gamsberg Phase II expansion is part of Vedanta’s ZAR 21 billion investment commitment, equivalent to nearly US$ 1.5bn, announced at the 2018 South Africa Investment Conference. At the 18th BRICS Summit held in New Delhi last month, President Ramaphosa urged greater Indian investment in key South African industries. Vedanta’s continued investment in the Northern Cape highlights the practical benefits of the strengthening economic partnership between India and South Africa.

South African president Cyril Ramaphosa said, “We have come to celebrate an investment that has moved from commitment to construction, and from construction to production. We welcome Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape. Government must work with Vedanta and other partners to address their requirements.”

Priya Agarwal-Hebbar, director of Vedanta and Chairperson of Hindustan Zinc, said, “For Vedanta, Gamsberg Phase II is more than an expansion of its zinc business. It is a commitment to South Africa’s future. My father, Vedanta founder and Chairman Anil Agarwal, made that commitment with the belief that the country’s mineral wealth could become a foundation for industrial growth, jobs and opportunity. Today, I am proud to see that vision coming to life. Our ambition is to build a globally significant zinc and industrial hub in the region., creating lasting value for the country and its people. The true measure of our success is not just what we produce, but the prosperity we help create for generations to come,”

In addition to generating employment through its operations, Vedanta has invested nearly US$ 20 million in community development initiatives across South Africa since acquiring Vedanta Zinc International in 2011. These programmes focus on healthcare, education, care centres, sports, livelihood opportunities, infrastructure and social welfare, benefiting more than 32,000 people annually. Earlier this year, Vedanta Zinc International also inaugurated an oncology centre in Namakwa as part of its priority community development initiatives.

Real-time tyre data can boost mining operations (Image source: Michelin)

Amaury Vadon, Michelin’s vice-president for Africa, India and the Middle East, explores how real-time tyre data and predictive maintenance can help African mines reduce costs, improve safety and boost operational efficiency

Mining operations across Africa are under increasing pressure to do more with less. Rising input costs, constrained capital investment, ageing fleets, and increasing ESG expectations are forcing operators to rethink how they optimise productivity while maintaining safety standards. In this environment, incremental gains in efficiency are no longer enough — mines need smarter, data-driven approaches that enable real-time decision-making and operational resilience.

This is where Michelin Better Mining is positioned as a strategic partner, helping operations unlock safer, more productive, and more sustainable performance through integrated tyre, data, and operational solutions.

Michelin Better Mining is not a single product or technology. It is Michelin’s comprehensive approach to partnering with mining operations across Africa to deliver measurable outcomes. The approach is anchored on three core pillars. Safety focuses on reducing operational risks and preventing incidents before they occur. Productivity centres on maximising asset performance and uptime across haulage fleets that drive 50%+ of operating costs. Sustainability targets lower environmental impact while supporting long-term value creation through energy-efficient technologies and responsible lifecycle management. Together these pillars form a holistic partnership that combines Michelin’s products, services, data, and expertise to solve systemic challenges African mines face today.

At the core of that partnership for African operations is MICHELIN MEMS 4. As the fourth generation of the first tyre monitoring system built specifically for surface mining equipment, MEMS 4 delivers what decision-makers need most: real-time intelligence. Unlike basic alerts, MEMS 4 continuously tracks tyre temperature, pressure and GPS location, and stores a full history for each tyre. That history is critical because tyre wear and failure rarely happen in isolation. Patterns emerge over weeks and months, and MEMS 4 makes those patterns visible before they become costly downtime.

Heat is what kills these tyres. With MEMS 4, you can see which trucks are running hot and reroute them before you lose a tyre. For African mines running remote 24/7 fleets, that means less downtime and tyres that last longer.

MEMS 4 is supported by Michelin’s Better Haul Road solution, which turns tyres into sensors to measure road undulation and truck cornering severity. For African mines managing vast haul networks with aging infrastructure, that data identifies where roads are rough, where trucks corner too hard, and where drivers need coaching. Teams can then adjust grading schedules and smooth problem sections. The result is lower diesel burn, fewer tyre replacements, and safer roads — direct contributions to both productivity and sustainability outcomes.

Michelin brings best-in-class capabilities to support all three pillars of Better Mining. On safety, solutions include TK Solution, Klinge, in-depth scrap tyre analysis, and continuous product innovation designed to reduce operational risks. On productivity, the portfolio includes the X MINE 70/70 tyre launched in 2023 for increased tramming speed and load capacity, Customer Engineering Support teams providing deep local mining expertise, MICHELIN MEMS 4 for real-time tyre monitoring, and Better Haul Road for road condition optimisation. On sustainability, Michelin delivers energy-efficient tyre technologies, end-of-life tyre solutions, and initiatives supporting environmental impact reduction and social development.

The strategic value of this partnership becomes clearest at scale. Valterra Platinum’s Flatreef project, one of the world’s largest platinum, palladium and rhodium deposits, demonstrates how small efficiency gains compound across a large fleet. Even a 1-2% improvement in haulage efficiency or a 10% extension in tyre life translates to millions saved per year. In Michelin’s “Inside the Mine” feature, Valterra’s crew showed how MEMS 4 data keeps 24/7 operations running with fewer interruptions. Dispatchers see which trucks need attention before they fail. Maintenance teams plan work around production schedules. Managers have data combined with Michelin’s expertise to back decisions.

For African operations facing rising costs and ESG pressure, Better Mining provides the operational control needed to stay competitive. For mines looking to get more from what they already have, it’s not about redesigning the pit. It’s about making smarter decisions with real-time data and shifting maintenance from reactive to predictive. Those small gains per truck add up fast across a fleet. Michelin Better Mining delivers that shift by acting as a strategic partner, not a supplier — bringing integrated tyre, data and operational solutions that make African mining safer, more productive, and more sustainable.

Volvo Mining to target global mining sector (Image source: Volvo Group)

Volvo Group is poised to capture more of a share in Africa’s mining industry with a new dedicated entity with a focus on the sector

The newly-formed Volvo Mining unit will be officially launched on 1 January, 2027 and hosted within Volvo Construction Equipment (Volvo CE).

It aims to bring together the group’s capabilities and expertise under a single, integrated business structure for the benefit of customers across the global mining industry.

The plan is that Volvo Mining will sell Volvo trucks, construction equipment and autonomous solutions to mining customers and their contractors.

As mining enters a new phase of growth and transformation, Volvo Mining will provide the focus needed to help customers meet increased demand for productivity, safety and resilience, according to Melker Jernberg, president of Volvo CE.

“Mining has been an important part of the Volvo Group for decades, but the industry's growing significance calls for an even greater level of focus,” said Jernberg.

“With Volvo Mining as our centre of expertise, we are combining capabilities from across the group to further enhance customer value in collaboration with our retail partners — this will create new opportunities to strengthen our position in a strategically important and growing segment.”

Backed by dedicated financial resources, Volvo Mining will drive product and service portfolio management for the group’s mining segment globally and take on a coordinating role in the various research projects across the group.

Initially, Volvo Mining will focus on mining customers and contractors in the Nordic region, with a phased expansion into additional markets.

Africa is a key and growing global mining region, producing commodities including platinum group metals, copper, cobalt, gold and manganese. 

As demand for critical minerals grows, mining companies are under increasing pressure to boost productivity, improve safety and reduce emissions, creating new opportunities for major equipment suppliers offering integrated solutions.

“Success in the mining industry is built over time. Customers make long-term investments and value trusted partners that combine high performance, operational expertise, and a deep understanding of their business,” said Roger Alm, President Volvo Trucks.

“By creating one organisation focused solely on creating a world-class product and services portfolio for the mining industry, with an end-to-end perspective, we can better leverage the Volvo Group offer in a more seamless approach.”

Mining operations require multiple types of machines and vehicles working together across excavation, hauling, loading, and transportation in demanding and often remote conditions.

As mines continue to focus on improving productivity, reducing emissions, and enhancing safety, the need for integrated solutions is increasing.

“By combining our proven autonomous technology and operational experience with Volvo group’s broader expertise, portfolio and customer relationships, we can provide integrated solutions that also deliver measurable value for mining customers – improving safety, productivity and efficiency across their operations”, added Nils Jaeger, president of Volvo Autonomous Solutions.

Mota-Engil Africa to Upgrade Mining Equipment and Workforce Skills. (Image source: EBRD)

The European Bank for Reconstruction and Development (EBRD) is extending a €99.1 million loan, equivalent to US$111mn, to Mota-Engil Africa to support its mining services operations in Côte d’Ivoire and Senegal

Mota-Engil Africa is a leading engineering, construction and mining services company operating across the continent, with involvement in major mining and infrastructure projects.

The financing will cover the acquisition of modern equipment, working capital needs and the refinancing of recent investments at three mines in Côte d’Ivoire and Senegal. The funding is intended to boost productivity, expand operational capacity and improve the sustainability of mining activities.

Replacing ageing machinery with newer, more environmentally friendly equipment is expected to reduce fuel consumption and greenhouse gas emissions.

The agreement also includes a commitment by Mota-Engil Africa to invest in local workforce development. Plans include strengthening employee skills and introducing nationally accredited technical training programmes in collaboration with educational institutions in Côte d’Ivoire and Senegal. The initiatives will provide participants with skills relevant to the modern mining industry, build a stronger pool of qualified workers and widen access to quality employment.

Mota-Engil Africa will also introduce targeted initiatives to increase women’s participation in the sector, focusing on recruitment, retention and career progression in technical, operational and leadership roles.

The two areas of work will receive support from a €200,000 (approx. US$224,000) technical cooperation programme provided by the EBRD through its Gender and Economic Inclusion Framework.

The EBRD began investing in sub-Saharan Africa in 2025. To date, it has committed more than €620 million (approx. US$694 million) across Benin, Côte d’Ivoire, Kenya, Nigeria and Senegal. Its investments support private-sector development, financial institutions, infrastructure, energy, natural resources, telecommunications and agribusiness.

Guinea, Uganda and Egypt outline plans to expand mineral processing

Guinea-Conakry is targeting five operational alumina refineries by 2030, with three already under construction, according to Daouda Diakité, senior adviser to Guinea’s minister of mines and geology

He announced the target during a ministerial panel at African Mining Week (AMW) 2026 in Cape Town on Wednesday.

The plan is a key component of Guinea’s Simandou 2040 strategy, which aims to move the country beyond raw mineral exports towards domestic processing and industrial development. Guinea intends to achieve annual alumina production capacity of seven to eight million tons by 2030, supported by investment in steel manufacturing, electricity generation and downstream infrastructure.

“Simandou 2040 is a strategy to shift from being a raw material exporter to developing a strong processing base that can sustain the country’s downstream sector. To achieve this, we are encouraging investment in domestic aluminum and steel production, as well as power projects that can support downstream development.,” he stated.

By building on its substantial bauxite and iron ore reserves, Guinea aims to develop domestic processing capabilities and attract investment in refining facilities, industrial infrastructure and power supply. These developments are intended to strengthen the country’s downstream industries and increase the value generated from its mineral resources.

Diakité also outlined progress towards domestic steel production associated with the Simandou iron ore project, confirming that feasibility work is nearing completion.

“The steel from Simandou has to be processed in Guinea, and we are finishing the feasibility study for that,” he added.

Guinea’s downstream development programme also extends to gold, with work progressing towards establishing a domestic gold refinery.

Uganda is pursuing a similar approach, using mineral processing to support industrialisation and regional trade. Monica Musenero Masanza, minister of energy and mineral development, said the country operates ten gold refineries that serve neighbouring East African markets.

“Rather than every nation enduring the high cost of building refineries, Uganda offers a regional solution. We allow our East African neighbors to bring gold in tax-free for toll processing, and because our operations run on excess renewable energy, the final product is truly green gold,” she stated.

In addition to gold refining, Uganda is developing its capacity to process tin to 99.9% purity and is advancing beneficiation initiatives for iron ore and phosphate. These activities are intended to supply materials for infrastructure projects and agricultural production.

“Uganda’s rapid development requires massive amounts of steel and fertilizer. With 14 companies lined up to produce steel billets from local iron ore and active plans to process our phosphate reserves, we are adding value to our minerals directly to build our infrastructure and fuel our agricultural needs,” Masanza added.

Egypt, meanwhile, is seeking to support Africa’s mineral-producing countries through logistics and infrastructure development. Its plans focus on improving links between mining sites, processing facilities and international markets.

Mohamed Zada, deputy minister for strategic industries, identified potential for cross-border investment in electricity generation, seaports and mineral transportation networks to facilitate the growth of Africa’s downstream industries.

“Egypt’s strategic location makes it a natural logistics hub. By partnering across the continent to build power plants and seaport infrastructure, we can optimize supply chains and bring Africa's finished mineral products to global markets,” he stated.

The developments discussed at AMW 2026 reflect a wider push to expand mineral refining, manufacturing and logistics capabilities across Africa. By investing in these areas, countries aim to retain more value from their mineral resources and create opportunities throughout the continent’s mining value chain.

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