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, but 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.

The first phase of the project is expected to have a mine life of 13 years, replacing the production lost by the closure of the Lisheen mine, in Ireland, and restoring volumes to more than 300 000 t/y.

There is also significant potential for further expansion at the Gamsberg North deposit.

Jobs to be Created
At the peak of construction the project is expected to employ about 1 500 people.

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 9- to12-month ramp-up.

Latest Developments
The prestripping of waste rock at the Gamsberg zinc mine is close to the halfway mark, Vedanta Resources has reported.

Vedanta subsidiary, Zinc International has committed more than 80% of the $400-million capital expenditure to the first phase of the Gamsberg zinc project.

About 32-million-plus tons of waste rock have been prestripped at the project, out of a required 65-million to 70-million tons.

This is taking place at a time of a high-flying zinc price, which last week hit the $3 308.75/t mark – its highest point in ten years.

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.