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, Skorpion Zinc in Nambia, and Lisheen in Ireland.

Project Description
Gamsberg is one of the world’s largest undeveloped zinc deposits, with a compliant resource of 134.7-million tonnes at 5.82% of zinc at Gamsberg north and a reserve of 486.6-million tonnes at 6.6% of zinc.

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 the mine and concentrator:

• a tailings dam, a waste rock dump and stockpiles;
• evaporation dams;
• offices, workshops and constriction workers contractors’ camp;
• an estimated 15 km power transmission line from the Aggeneys substation to Gamsberg;
• an estimated 60 km water pipeline from the Pella pumpstation to Gamsberg;
• a 10 km access road from the N14 to Gamsberg; and
• sewage treatment facilities.

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 project broke ground on July 27.

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

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.
Rand Merchant Bank, tel +27 11 282 8000, fax +27 11 282 8008 or email info@rmb.co.za.
Le Roux Mining & Commodities, tel +27 11 575 1589, fax +27 86 528 0273 or email lerouxmining@gmail.com.
BME, tel +27117098765, fax +27114633023 or email info@bme.co.za.