Skorpion Zinc in record 150400 tonnes output

June 1, 2010 - PRLog -- Southern Times Africa reported that Namibia's Skorpion Zinc mine produced a record 150,400 tonnes of special high grade zinc as rising prices from 2008 slump boost output.

Skorpion zinc mine is amongst a package of Anglo American zinc assets bought by Vedanta resources. The mine, which has a nameplate capacity of 150,000 tonnes annually produced 145,396 tonnes of SHG zinc in 2008. Output at 150,400 tonnes in 2009 was 1.5% below target as production was hit by power shortages and mechanical breakdowns.

Skorpion Zinc mine said that the zinc market recovered well during 2009 with significant rises in prices. These higher prices appear to have stabilised and the outlook for 2010 is positive.

Anglo American Plc 2 weeks announced that it had sold its zinc assets in South Africa, Namibia and Ireland to Vedanta Resources for USD 1.3 billion with Skorpion mine fetching the highest price, USD 698 million.

Vedanta, led by Indian billionaire Mr Anil Agarwal will also pay USD 308 million for Lisheen mine in Ireland and USD 332 million for 74% stake in Black Mountain mine which owns Gamsberg zinc deposit.

Skorpion mine has an off take agreement with metals trader Trafigura, is the eight largest zinc mine in the world with annual nameplate capacity of 150,000 tonnes of SHG.

The mine produced 150 080 tonnes of zinc in 2007 with output falling slightly to 145,396 tonnes in 2008. The robust performance at Skorpion is in stark contrast to zinc output at neighboring Rosh Pinah zinc and lead mine, which is owned largely by South Africa diversified resources company Exxaro.

Production at Rosh Pinah remained static at 94 000 tonnes of zinc concentrates and 20,000 tonnes of lead concentrates in 2009. Rosh Pinah said that discovery of additional underground reserves will extend the life of mine to beyond 2017.

Zinc mined at Rosh Pinah, which is adjacent to Skorpion mine, is treated at Exxaro's Zincor refinery in Gauteng, South Africa. Rosh Pinah said that an exploration program has resulted in an indicated resource of 5.8 million tonnes grading 6.66% zinc and 1.81% lead plus an inferred resource of 1.66 million tonnes at 4.81% zinc and 0.81% leads.

Source: http://www.steelguru.com/news/index/MTQ4Mzgx/Skorpion_Zin...