Debswana awardsmining contract, starts Cut-9 project

Debswana Diamond Company (Debswana) has awarded a local contract to Majwe Mining, a joint venture (JV) between Bothakga Burrow Botswana and mining services provider Thiess Botswana, to provide mining services to Debswana’s Cut-9 project at the Jwaneng mine.

The value of the contract is $1.2-billion and will span over nine years. The contract includes drill and on-bench services, mining planning, equipment maintenance, load-and-haul, and mining operations.

The new contract at the Cut-9 operation followed Majwe’s successful completion of the Cut-8 project in November last year, Cimci reported in March.

Debswana, a 50:50 JV between the Botswana government and De Beers Group, has started the Cut-9 project to extend the life of the Jwaneng mine, one of the world’s most valuable diamond mines.

The Cut-9 project will extend the life of the mine to 2035, and is expected to yield an estimated 53-million carats of rough diamonds from 44-million tonnes of treated material.

Debswana will invest about $2-billion over the life of the project, underpinning the partnership’s commitment to the future of Botswana’s diamond industry.

Debswana shareholders have approved the budget for 2019 so that the next phase of work can start.

At its peak, Cut-9 is expected to create more than 1 000 jobs, the majority of which will be held by Botswana citizens.

Debswana chairperson Bruce Cleaver has noted that “the extension of the Jwaneng mine secures Botswana’s rightful place as a leading diamond producing nation for years to come”.

“With global consumer demand for diamonds reaching record levels in 2018, the extension will enable us to continue to meet the needs of our consumers all over the world.

“We are deeply proud of the central role the Jwaneng mine has played in Botswana’s remarkable development story and of the role this investment will play in its future.”

Debswana MD Albert Milton notes that as Debswana has undertaken the central role throughout the history of Jwaneng mine, “we remain steadfast in ensuring that all projects are delivered safely and to the benefit of the people of Botswana”.

“We are also committed to delivering on the citizen economic empowerment policy (CEEP) goals and will focus on training our people, developing their skills and harnessing technology to create further safety and efficiency improvements.”

The high level CEEP key performance indicators for the Cut-9 project include, but are not limited to, the establishment of an apprentice and artisan training centre and a component rebuild centre, which is expected to mature into a self-sustaining business within three years from the launch of the project, as well as additional local business development initiatives.

Debswana was formed in 1969 and is a significant contributor to Botswana’s economy with more than 80% of its profits being returned to the people of Botswana.

The Jwaneng mine contributes about 70% of Debswana’s total revenue. Diamonds from Debswana, in turn, contribute about 50% of public revenue, 33% of gross domestic product, and more than 80% of foreign earnings to Botswana.