Name of Project
Gamsberg zinc project.

Location
Northern Cape, South Africa.

Client
Vedanta Zinc International (VZI) 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 (LoM) is estimated at 30 years.

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

• housing units for accommodation requirements.

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

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

Potential Job Creation
At the peak of construction, the project is expected to employ about 2 500 people. When operational, Gamsberg will employ 700 to 800 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 90% of the costs for Phase 1 are committed.

Duration
The first blast took place in July 2015. In Phase 1, which has an LoM of 13 years, four-million tons a year of ore will be produced from Gamsberg’s openpit and 250 000 t/y of zinc-in-concentrate from its concentrator plant. First production is expected by mid-2018, with full ramp-up expected to be reached in 9 to 12 months thereafter.

Latest Developments
The main construction activities and commissioning of the front-end ore crushing, handling and stockpiling system for the Gamsberg zinc mine project has been completed.

Completed for the Black Mountain Complex by ELB Engineering Services and their business partners during July, the milestone supports the phased completion of the construction and commissioning of the four-million-tonne-a-year zinc concentrator in achieving design throughput during initial commissioning.

Against the background of a positive zinc price, VZI has started commissioning activities at the greenfield mining project, where early production has begun.

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

On Budget and on Time?
Gamsberg is on track for first production in mid-2018.

Contact Details for Project Information
VZI PR and corporate affairs manager Christo Witbooi, tel +27 54 983 9225 or email CWitbooi@blackmountain.co.za.