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Gamsberg zinc project, South Africa

20th April 2018

     

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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 a 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 a LoM of 13 years, 4 Mtpa of ore will be produced from Gamsberg’s open pit and 250 000 tpa 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
VZI reported in February that construction of the concentrator at Gamsberg was under way, with the ball mill shell and crusher mechanical erection completed in the third quarter of the 2018 financial year. Cold commissioning is expected in mid-2018.

Power and water infrastructure was 90% complete. Eventual full production of 250 000 t/y is earmarked. Eighty per cent of Gamsberg’s prestripping is complete and a 500 000 t ore stockpile is targeted ahead of first feed. Waste prestripping is expected to be fully completed by mid-2018.

As reported by Mining Weekly in December, VZI is implementing a digitalisation initiative that will result in a ‘smart ore movement’ system built into Gamsberg to ensure that all available information on the state of the mine, the quality of the ore, the conditions of the processing plant and the value of the output product is made available to the mine management team in real time and presented in a way that allows for minute-by-minute decision-making.

Key Contracts and Suppliers
Aveng Moolmans (bulk mining); ELB Group (concentrator and associated infrastructure); Liviero Civils (tailings dam), 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.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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