Gamsberg-Skorpion integrated zinc project, South Africa and Namibia
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, 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
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
The total cost of the project is estimated at an estimated $600-million.
Vedanta has made significant progress in reducing Gamsberg capital expenditure over the life of the project, reducing capital expenditure by $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 in scheduled for 2018.
Latest Developments
Prestsripping and surface work at Gamsberg is progressing. To date, more than eight-million tonnes of waste rock has been excavated. Discussions are at an advanced stage with various engineering, procurement and construction vendors for the concentrator plant, mining and infrastructure packages.
The project internal rate of return remains in midteens despite the current commodity price scenario, therefore developing it further remains attractive.
The Skorpion refinery conversion is under detailed feasibility study. The basic engineering is in the final stage of evaluation and Vedanta is reviewing capital and operating expenditures.
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.
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