The production of zinc from low grade concentrates, particularly those high in iron, has a poor economic return due to a combination of higher concentrate transport costs, increased processing costs and an increased cost for disposal of iron residues. The production of iron-bearing residues from the electrolytic zinc process is also seen as undesirable for both cost and environmental reasons. This paper details the pilot plant testwork conducted at the Pasminco Research Centre in conjunction with Minproc for the production of zinc oxide fume from a high-iron zinc sulphide concentrate from Colquiri in Bolivia. The concentrate is derived from a tailings retreatment operation and has a high iron content (40 - 45 per cent Zn, 14 - 17 per cent Fe) due to the presence of marmatite. Pilot plant trials were conducted using the slag bath reactor at Pasminco Research Centre at rates up to 500 kg/h of pelletised zinc concentrate, using a natural gas/oxygen-enriched air lance. The fume produced averaged 76 per cent Zn at recoveries up to 96 per cent and was recovered in a baghouse after gas cooling. The iron was oxidised into a fayalitic slag that passed the TCLP test (toxicity characteristic leaching procedure) and the sulphur was oxidised to produce a high SO2 gas which would be suitable for sulphuric acid production. The process produces a zinc oxide fume that can replace calcine as a feed for electrolytic zinc plants. The iron reports to a stable slag for disposal, thus eliminating the need for its disposal as jarosite from the leach plant. Only a simple leaching operation on the fume is required as there is no zinc ferrite present.