Name of the Project
Gamsberg-Skorpion integrated zinc project.

Location
South Africa and Namibia.

Client
Zinc International is a grouping of Vedanta Limited’s zinc assets in southern Africa and Ireland. The group comprises Black Mountain Mining in South Africa, Skorpion Zinc, in Nambia, and Lisheen, in Ireland.

Project Description
Gamsberg is one of the world’s largest undeveloped zinc deposits.

The project has an ore reserve of 53.18-million tonnes at 6.63% zinc and 0.51% of lead at Gamsberg North.  In addition to the reserves, Gamsberg North has a resource of 130-million tonnes at 6.1% zinc and 0.52% lead (reserve and resource cutoff at 3% zinc). In addition to the reserves, Gamsberg East has a defined inferred resource of 32.2-million tonnes at 9.83% zinc and 0.52% lead at a 7% zinc cutoff. Both orebodies are still open at depth.

The project involves the phased development, construction and commissioning of a four-million-tonne-a-year openpit zinc mine, concentrator and associated infrastructure at Gamsberg, in South Africa’s Northern Cape province.

In addition, the project includes the conversion of the Skorpion Zinc Refinery, in Namibia, to process zinc sulphide material from Gamsberg. The expansion will also extend the life of the Skorpion Zinc operation.

The following associated infrastructure will be put in place, along with the mine and concentrator:

• a tailings dam, a waste rock dump and stockpiles;
• offices and workshops;
• a power transmission line from the Aggeneys substation to Gamsberg;
• a water pipeline; and
• an access road from the N14 to Gamsberg.

The first phase of the Gamsberg mine is expected to have a 13-year mine life.

Jobs to be Created
Gamsberg currently employs 322 people on site.

The project will employ another 850 to 900 people when operational.

Net Present Value/Internal Rate of Return
Not stated.

Value
Phase 1 of the project was initially estimated at $600-million.

Vedanta has made significant progress in reducing Gamsberg capital expenditure over the life of the project from $200-million to $400-million, primarily through re-engineering and renegotiating contracts, taking advantage of the current commodity environment.

Duration
The first blast at the mine project took place in July 2015. First production is scheduled for 2018.

Latest Developments
Black Mountain Mining has awarded a contract to establish and mine the Gamsberg opencast zinc operation to Aveng Moolmans.
 
Aveng Moolmans’ scope of work includes establishing a fleet of mining equipment, workshops, offices, stores and related facilities on site, the formation of access ramps, the mining of waste material and ore, and hauling to dumps and stockpiles. Additional work includes drilling and blasting, the presplit and trimming of final pit walls, forming and maintaining dumps and ore stockpiles, building haul roads and implementing dust control measures.
 
A total of 50 822 079 bank cubic metres (BCMs) of waste and ore will be mined over the initial 44-month contract period – comprising 47 887 780 BCMs of waste and 2 934 299 BCMs of zinc iron-ore.

Key Contracts and Suppliers
Rand Merchant Bank (debt advisory), Le Roux Mining & Commodities (prestripping) and BME (explosives and drilling).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Zinc International Manager PR and Corporate Affairs Christo Witbooi, tel + +27 54 983 9225 or email CWitbooi@blackmountain.co.za.