Cut 9 involves deepening to Jwaneng Mine pit beyond 650-metres to tap into an ore body that will yield approximately 48 million carats and support the mine to its end of life in 2035.
The project is the last open cast layer available at Jwaneng Mine and thereafter a P65 billion underground operation is planned.
This week, Debswana officials said ore from Cut 9 was expected to provide 80% of the feed to processors at Jwaneng from 2029.
Jwaneng Mine general manager, Koolatotse Koolatotse told BusinessWeek the expansion is going well and the results are visible.
“We have been doing this project since 2019 and it has been more productive and efficient with better returns,” he said during a media engagement. “The year 2022 costs are very unfriendly but still we managed to remain afloat and continue to save money in the middle of inflation.”
Inflation is trending at 14-year highs and has impacted various inputs being used in the mining industry, including fuel, parts and others. Debswana’s wholly owned subsidiary, Naledi Mining Company, is expected to take over the Cut 9 contract from next January, a move the diamond group says will improve cost efficiency in the mammoth project.
Majwe Mining, a consortium which delivered the previous expansion at Jwaneng known as Cut 8, originally had the Cut 9 contract before Debswana terminated the P15.7 billion deal early last year in favour of a hybrid arrangement where the diamond group would partner with a citizen contractor.
“The board has already given an offer to the person who will be taking over as the CEO of Naledi,” Koolatotse said. “The paperwork has been finished four months ahead of the targeted time.”
Naledi is expected to employ more than 750 workers and has an annual turnover of P300 million by next year. Initially, it will provide labour services for Cut 9, including operational skills such as machines, trucks, supervision, earthmoving equipment, and repairs and maintenance.
Later, Debswana wants to see Naledi competing in the industry and even branch out of the country.
