Name of Project
Gamsberg zinc project.

Location
Northern Cape, South Africa.

Client
Vedanta Zinc International (Zinc International) is a grouping of Vedanta Limited’s zinc assets in Southern Africa and Ireland. The grouping comprises Black Mountain Mining and the Gamsberg zinc project, both in South Africa’s Northern Cape province; Skorpion Zinc, in the Karas region of southern Namibia; and Lisheen, in Ireland, which is in advanced orderly closure mode.

Project Description
Gamsberg is being developed on one of the world’s largest known, as yet undeveloped zinc deposits.

While Gamsberg's grade is relatively low – between 6% and 6.5% – its current reserve and resource is 214-million tonnes, and the life-of-mine is estimated at 30 years. A substantial portion of the orebody has yet to be drilled to prove additional reserves and resources.

The first phase of the project will comprise an openpit mine, a concentrator and associated infrastructure that includes:
• 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;
• an access road from the N14 to Gamsberg; and
• 300 to 350 housing units for accommodation requirements.

Jobs to be Created
The project currently employs about 500 people in the construction phase; this is expected to increase to a peak of 1 500 by mid-2017.

When operational, Gamsberg will employ between 850 and 900 people.

Value
The capital cost of Phase 1, through a range of innovative adjustments made by the project team to keep Gamsberg's development on track when the zinc price weakened, has been reduced from $600-million to $400-million.

About 80% of the costs for Phase 1 are committed.

Duration
The first blast for Phase 1 took place in July 2015.
Phase 1 production, starting in mid-2018, will increase to four-million tonnes of ore and 250 000 t/y of zinc concentrate in a six- to nine-month ramp-up.

Latest Developments
First production at Vedanta’s Gamsberg project remains on track for mid-2018.

Vedanta broke ground in July 2015 and prestart activities and waste-stripping are progressing well.

About 15.5-million tonnes of waste rock have been excavated to date and all major orders have been placed and major contractors have been mobilised to site.

The first phase will include a four-million-tonne-a-year opencast mine and a 250 000 t/y processing plant.

Key Contracts and Suppliers
Aveng Moolmans (bulk mining); ELB Group (concentrator and associated infrastructure); Liviero Civils (tailings dam)

On Budget and on Time?
Yes.

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.