Sesa Sterlite board approves USD 782 mn projects in Africa

Sesa Sterlite, a diversified natural resources company, today said its board has approved development of Gamsberg-Skorpion Integrated Zinc project in South Africa and Namibia for USD 782 million, to be invested over a three-year period.
The amount will be spent on the development of open pit zinc mine in Gamsberg, South Africa, as well as the conversion of Skorpion Zinc Refinery in neighbouring Namibia, it said.
Majority of the investment, around USD 630 million, will go towards developing an open-pit zinc mine, concentrator plant and associated infrastructure at Gamsberg. The balance investment will be used to convert the refinery at the Skorpion Mine in Rosh Pinah, Namibia thereby enabling it to refine zinc concentrates from the Gamsberg mine into special high grade zinc meta, the release said.

"The Gamsberg-Skorpion Integrated Zinc Project is central to Vedanta's long term aspirations for Southern Africa," Sesa Sterlite chief executive officer Tom Albanese said in a media statement.
Vedanta estimates that the Gamsberg project, which is located near the town of Aggeneys in South Africa's Northern Cape Province, will create 1,500 jobs during construction and result in around 500 permanent jobs. The Gamsberg project will be operated under the auspices of Black Mountain Mining which is 74 percent owned by Sesa Sterlite.
The remaining 26 per cent interest in BMM is held by Exxaro Resources, a diversified resource company listed on the Johannesburg Stock Exchange, the release said.

The first phase of the Gamsberg open pit mine is expected to have a total lifespan of around 13 years with the first ore likely to be produced in 2017/18.
The Gamsberg Zinc Project involves the development, construction and commissioning of a 40 lakh tonne ROM open-pit zinc mine, concentrator and associated infrastructure at Gamsberg, 20km from the town of Aggeneys. The company expects to commence construction of the new mine during the first quarter of 2015, the release added.