OWN CORRESPONDENT, Johannesburg | Tuesday 11.00am.
ANGLO American plans to develop a R4-billion zinc mine and smelter at Gamsberg in the Northern Cape, having secured an agreement to purchase a 90-million ton deposit from Gold Fields of South Africa.
The new mine should create 2000 new jobs and produce 200000 tons of refined zinc a year from the 4%-grade ore.
According to Anglo American chairman Julian Ogilvie Thompson, the depreciation of the rand has helped make the venture affordable, even using conventional technology. New technology is being developed with Mintek, which may push up returns from the deposit.
Total annual revenue for the site is estimated at $280-million, or approximately R1,8-billion, with production costs running at a probable $0,30/lb.
The refinery complex may well be situated at Saldanha Bay, as most of the zinc will be exported.