With a total budget estimated at $6 billion, the underground mine at Jwaneng will be the country’s single biggest project ever by value and, according to Debswana, will create the world’s largest underground diamond operation.
On Wednesday, Debswana officials said the company’s board had approved P13.6 billion to commence the early access development phase from May. The early access phase will be undertaken by a contractor.
“The phase aims to establish a drilling platform facilitating comprehensive sampling and evaluation of the kimberlite pipes via diamond extraction at 1,000 metres below ground level,” officials said. “This phase lays the groundwork for Phase 1 Mining, forming the essential backbone infrastructure for forthcoming stages of the project.”
Since its birth in 1982, Jwaneng Mine has co-anchored the country’s economic miracle together with Orapa. However, as the resources have declined over the years, increasingly expensive expansions have been required to reach the ore.
Following the Cut 8 expansion, Jwaneng was already one of the world’s largest open-cast diamond mines at about 625 metres deep and after the Cut 9, the pit has reached down to more than 800 metres. Production from Cut 9 will last until 2033 at which point ore from the underground project should be ready to take over and continue mining activities until at least 2054.
Previously supplied Debswana documents show that the underground operations will feature an estimated 360 kilometres of tunnels burrowing into the earth. Each year, the tunnels, blasting and digging operations will bring nine million carats to the surface.
In a statement on Wednesday, Debswana chair and Permanent Secretary to the President, Emma Peloetletse said the phased implementation of the underground project would ensure uninterrupted activities at Jwaneng Mine.
“The future prosperity of Debswana hinges upon the progression of the Jwaneng Underground Project,” she said. “With approximately 70% of Debswana's profits and distributions attributable to Jwaneng, extending its life of mine beyond 2033 is pivotal for sustaining contributions to the shareholders.”
Debswana managing director, Andrew Motsomi, described the latest developments as a major achievement for the company’s business strategy and future outlook.
“The current strategy that ends at the end of 2024, has focused on transformation and transitioning the mines, and business as a whole, for a sustainably successful future. “Beyond 2024, the business intends to set the stage for further growth to boost shareholder returns, which will help our national development,” he said.
