Gamsberg project, South Africa

14th December 2018 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Gamsberg project, South Africa

Name of Project
Gamsberg project.

Location
Black Mountain Mining, near Aggeneys, Northern Cape, South Africa

Client
Vedanta Zinc International (VZI) is a grouping of zinc assets located in South Africa, Namibia and Ireland, owned by India-based Vedanta, a listed subsidiary of Vedanta Resources.

Operations include:

VZI aims to create an integrated world-class regional zinc complex comprising BMM (including Gamsberg) and the Skorpion Zinc mining and refining operations.

Project Description
Gamsberg, one of the largest greenfield mining projects in Africa, is being developed on one of the world’s largest known, but as yet undeveloped, zinc deposits.

The project’s current reserve and resource is 214-million tonnes, with a grade of between 6% and 6.5%, and an estimated life-of-mine (LoM) of 30 years.

In Phase 1, four-million tonnes of ore will be produced from Gamsberg’s openpit and 250 000 t/y of zinc-in-concentrate from its concentrator plant.

Phase 2 will increase ore mined to eight-million tonnes a year and production of zinc-in-concentrate to 450 000 t/y.

Phase 3, which is expected to start in 2025, will result in this increasing to 600 000 t/y.

Potential Job Creation
Gamsberg, which has the potential to trigger a new wave of industrial and economic development in the Northern Cape, has employed more than 3 000 people during construction over the past two years.

For the operational phase, about 750 people are already employed.

Value
Phase 1 of Gamsberg is valued at $400-million.

Phase 2 is estimated at between $350-million and $400-million.

Duration
The LoM of Phase 1 is 13 years.

Latest Developments
In the lead-up to achieving its production target of 600 000 t/y, diversified miner Vedanta's Northern Cape-based Gamsberg zinc mine is ready to launch Phase 1.

Thus far, 72-million tons of overburden has been prestripped.

Key Contracts and Suppliers
Aveng Moolmans (bulk mining); ELB Group (concentrator and associated infrastructure); Liviero Civils (tailings dam); Zest WEG Group, including Shaw Controls (upgrade of municipal supply station providing water for the mine and zinc concentration plant).

On Budget and on Time?
Plant and infrastructure construction activity peaked in the first quarter of the 2018/19 financial year. Commissioning is near completion, and first commercial production from the concentrator plant is expected in September 2018 and ramp-up to full production of 250 000 t/y within nine to 12 months thereafter.

Contact Details for Project Information
R&A Strategic Communications, Charmane Russell or Marika Muller, tel +27 11 880 3924 email charmane@rasc.co.za  or marika@rasc.co.za.