Debswana awards Majwe new P3bn contract
Brian Benza | Thursday December 8, 2016 18:00
The contractor’s previous contract ended recently resulting in Majwe reducing its staff complement by 260 workers.
Global mining services provider, Thiess, which has a 60% share in the Majwe Mining Joint Venture, said yesterday that it has secured a new two-year contract at Jwaneng mine.
The new contract, with revenue of approximately $370 million (P3 billion), will result in partners Thiess Botswana, Basil Read Mining Botswana and Bothakga Burrow Botswana continuing mining operations at Jwaneng until the end of 2018.
Thiess managing director, Michael Wright said: “Our operational and technical teams have a strong track record at Jwaneng, which we’re pleased to continue through this contract. We’re proud to continue being part of the Jwaneng expansion operations, bringing a continued focus on mine engineering and asset management, and developing the skills and experience of our people in Botswana”.
The Majwe Mining JV has performed mining operations at Jwaneng since 2011, including mine planning, drill and blast, load and haul operations, and asset maintenance.
In the five-year contract which ended recently, Majwe was tasked with delivering the Cut 8 Project.
The project involves the widening and deepening of the existing Jwaneng pit as a short-term alternative to going underground. The project was expected to strip 713 million tonnes of waste in order to expose 75 million tonnes of ore and 100 million carats.
Without Cut 8, mining at Jwaneng will be severely curtailed post 2017 as ore from Cuts 6 and 7 is almost depleted.
Cut 8 will extend the life of the mine by seven years from 2017 to 2024 and optimise long-term distribution to shareholders while contributing to the development of Botswana. Jwaneng was mining to a depth of 330 metres in 2009 when the project started and Cut 8 is expected to reach 650 metres by 2017. Beyond Cut 8, Debswana is expected to embark on Cut 9, which will be expected to extend Jwaneng Mine’s lifespan from Cut 8’s 2024 to 2032.
Meanwhile, Debswana has also announced that the Letlhakane Mine Tailings Resource Treatment Project, which will add 25 years to diamond production at Letlhakane Mine, is nearing completion.
Construction of the project which will avail diamonds to Debswana when mining comes to an end at Letlhakane Mine next year, started in early 2015. Currently, the project employs over 800 people.
The project will provide a specifically designed mining and treatment solution to ensure optimal economic recovery of the Letlhakane coarse tailings mineral resource. Additionally the project is also poised to save jobs when the current mining phase ends next year.
“The tailings plant is currently at 80% of overall completion, while structural and electrical installations remain on course. The project is expected to be commissioned during the third quarter of 2017,” Debswana corporate affairs manager, Matshidiso Kamona said.
Debswana plans to keep production flat at 20 million carats in 2016.