Name and Location
Gamsberg-Skorpion integrated zinc project, South Africa and Namibia.

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

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

The project has a defined ore resource of 182-million tons at Gamsberg North, with an estimated 11-million tons of contained metal. In addition, Gamsberg East has a defined inferred resource of 58-million tons at 7.96% zinc, with total contained metal of about 4.5-million tons. Both resources are still open at depth.

The project involves the development, construction and commissioning of a four-million-ton-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 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 mine and concentrator:
• a tailings dam, a waste rock dump and stockpiles;
• offices and workshops;
• a power transmission line;
• 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.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project is valued at $782-million.

About $630-million will be spent on developing the Gamsberg mine, concentrator and associated infrastructure. The balance of $152-million will be spent on the refinery conversion project at Skorpion.

Duration
The project has a construction period of about three years, with first production targeted for the 2017/18 financial year.

Latest Developments
The Vedanta board has approved the Gamsberg-Skorpion integrated zinc project. The investment decision was made following the presentation of a detailed feasibility study on the mining project to the board.

Work is already under way to further optimise the project, which includes rescheduling and sequencing of the project execution to optimise cashflows. Contractor negotiations for each of the construction packages are ongoing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Zinc International VP human resources and corporate affairs Braen Migogo, tel +275 498 39339 or email BMigogo@blackmountain.co.za.