Tag Archives: Jwaneng

Debswana board approves ~$1 billion investment in Jwaneng underground diamond project

The Board of Debswana, the 50:50 diamond mining joint venture between De Beers Group and the Government of the Republic of Botswana, has announced approval of the investment for a key development phase of the Jwaneng underground project, paving the way for one of the world’s most valuable diamond mine to transition from open pit to underground operations.

The circa-$1 billion investment in this phase of works, known as the Exploration Access Development Phase, is for establishing a drilling platform to facilitate comprehensive sampling of the kimberlite pipes, delivering the early access decline for the underground mine and developing essential infrastructure to support forthcoming stages of the project.

The initial works, to start in May 2024, follow the successful completion of feasibility studies.

Following the Exploration Access Development stage, the project will be developed in two further phases, Phase 1 mining and Phase 2 mining, to support long-term future production at the mine in an environment of tightening long-term diamond supply.

De Beers Group CEO and Debswana Deputy Board Chairman, Al Cook, said: “Jwaneng stands proudly as the world’s greatest diamond mine. It is a central pillar of both the Botswana economy and the De Beers Group business. The global supply of natural diamonds is falling, so moving forward with the Jwaneng Underground Project creates new value for investors, brings new technology to the country, creates new skills for our workforce and provides new gems for customers around the world. This investment is aligned with our strategy to prioritise investments in the highest quality projects. We are proud to work in partnership with the Botswana Government in creating a bright future for Debswana.”

Since 1982, when the Jwaneng Mine started operating, it has produced an annual average of almost 11 Mct/y. Currently the mine employs 2,100 permanent employees and 3,200 contractors. Pending relevant future Debswana Board approvals, the Jwaneng underground project will ensure a long-term future for the mine while creating new jobs in Botswana and ensuring Debswana continues to make a significant contribution to Botswana’s economy, De Beers says.

De Beers taking major technology steppingstone at Venetia Underground

Making the transition from an open pit mine that has been operating successfully for 30 years to an underground operation that could become one of the most mechanised and automated in the world is not something that happens overnight.

De Beers Group embarked on the $2.3 billion underground expansion of its Venetia asset in Limpopo Province in 2012, in a move that represented the biggest single investment in South Africa’s diamond mining industry in decades.

Underground production began at the mine back in June this year, at a point when construction completion was estimated at 70%.

The introduction of autonomous mining systems performing multiple mining processes to deliver up to 6 Mt/y of kimberlite ore – for circa-4 Mct/y of diamonds – is now beginning, with a ramp-up process occurring over the next four years, according to Moses Madondo, Managing Director of De Beers Group Managed Operations.

“The technologies we are implementing – some of which are under development themselves – will be gradually phased in,” he told IM. “Where appropriate, we will take advantage of ‘proven’ technologies first to ease the change management process, before advancing to less mature technologies thereafter.

“The process should see us start operating areas of the mine in autonomous capacity by 2027.”

De Beers has engaged Sandvik Mining and Rock Solutions for its automated production machines, with the OEM delivering a 34-strong fleet made up of LHDs, ADTs, twin-boom drill rigs, roof bolters, cable bolters and production long hole drills. A further 12 units will be delivered in the future. These iSeries machines include 17- and 21-t payload LH517i and LH621i LHDs, 51-t payload TH551i ADTs, DD422i face drills, DS412i roof bolters, DS422i cable bolters and DL422i production drills.

Employee in the cab of one of the fleet of Sandvik machines

The underground mine will use sublevel caving to extract material from its K01 and K02 orebodies. Initially the ore will be hauled to surface using a combination of underground and surface haul trucks. As the operation matures, the hauling systems will transition to an automated truck loop in combination with vertical shafts for steady-state production.

Sandvik is also providing its AutoMine® system for the remote operation of loaders and trucks and its OptiMine® system for machine health monitoring, task management and location tracking.

Automation will be applied through a phased approach, beginning with manual operation and close monitoring of performance through data analytics. Automation will then gradually be introduced with the necessary training and experience in the operation and support of these technologies.

Madondo explained: “Our current fleet is made up of manually operated machines, which are optimised with automated task management. This process still requires an on-board operator, although many functions are automated.

“The next step would be autonomous machines, operated and overseen from surface, with our training centres already set up to deliver that.”

A pilot project to prepare the production team for the use of remote loading at the drawpoints and autonomous tramming to the tip is in the process of being established, with trials set for later this year and into 2024.

With sublevel cave mining, there is a risk of mud rushes and water ingress at drawpoints and remote loading will allow material to be loaded without putting operators at risk.

This pilot project will have a single loader operating under AutoMine Lite in a dedicated area on 46 Level that is isolated from other areas of the mine, with the machine controlled locally from a mobile tele-remote station just outside the autonomous operating area (ie not from surface).

An integrated operations centre on surface has been constructed and is in the final stages of commissioning.

Moses Madondo, Managing Director of De Beers Group Managed Operations

This is but a fraction of the emerging technology the company plans to employ at the mine, as Madondo highlighted.

“Of course, we will be integrating more technologies into the mix – digital mobility, data analytics, a cave management system, collision prevention, personnel alert systems, equipment location and tracking, production management through digital platforms, centralised blasting systems and digital twins,” he said. “All of these projects have people working on them to deliver our project objectives.”

For Madondo, the business case for employing such high levels of mechanisation and automation has only strengthened in the 11 years since the first shovel was placed in the ground for the underground project.

“This is a challenge with deep underground mining projects – they take a long time to develop and, in that period, technology and economics change,” he said. “It is, however, clear that mechanised mining allows you to take on these advanced technologies as the years go by.

“The investments are not just for technology’s sake. The business case must be built on our ability to improve safety and keep our people away from harm; as well as to make us more efficient and beat inflation, ensuring the margins we promised investors are realised.”

On the former, the company has partnered with Booyco Electronics on rolling out the South Africa-based company’s Level 9 – as defined by the Mining Industry Occupational Safety and Health (MOSH) organisation of South Africa – Booyco Electronics CWS850 collision prevention system at the mine.

“All of our Sandvik equipment is Level 9-enabled and we’re busy on this rollout,” Madondo said. “We’re already employing Level 7 (a system that warns pedestrians of their proximity to trackless mobile machinery) for this equipment. It’s now just a matter of getting to that new advanced level efficiently and safely.”

The company is also employing the Mobilaris Mining Intelligence platform for personnel location and situational awareness to help locate individuals in case of an emergency and notify them of incidents should they occur.

On the productivity side, the company is employing a cave management system to prevent overdrawing, Madondo says, linking the sub level caving mine plan with on-board LHD diagnostics and bucket weighing for efficiency and safety.

Process controller overseeing processing operations within the Venetia Mine

On top of OptiMine and AutoMine from Sandvik, the company is looking to integrate Howden’s Ventsim™ CONTROL system for monitoring, control and optimisation of underground mine ventilation in a ventilation on demand (VoD) application.

“We will gradually introduce VoD and Ventsim CONTROL as it allows us to 1) optimise the use of air and ventilation; and 2) retain the right condition and hygiene levels in the areas of the active mine,” Madondo said.

In an automated mining scenario, Ventsim CONTROL could potentially start ventilating an area of the mine in line with the expected arrival of the autonomous equipment, optimising the process and environment, and, as a result, reducing energy use.

Reaching the pinnacle

Also part of that discussion is decarbonisation – an area the company has already made significant progress on with its move underground.

“Transitioning from surface to underground has reset the energy balance,” Madondo said. “This has seen the site become far less reliant on energy from fossil fuel sources, with the big trucks and loaders from the pit replaced with smaller underground equipment and more electrical infrastructure.

“We predict by that, by 2030, 85% of all energy consumed will be electrical and only 6% will be diesel. That is a significant shift from the open-pit operation where nearly 85% of all energy consumed was from diesel.”

The company’s broader electrification work is currently in the review stage, but Madondo did provide some insight into the focus areas.

“We are looking at battery LHDs and trucks; we will consider trolley assist hauling loops and tethered electrical loading in some of the areas too,” he said. “It is all part of a progressive shift that will be integrated with the sourcing of renewable power for the mine.”

De Beers itself has set targets to become carbon neutral across its operations by 2030, Venetia Underground included.

The first electrification project the company is likely to embark on is a battery-electric retrofit of one of its light duty vehicles, Madondo said, explaining that this technology is relatively mature and comes with less infrastructure requirements due to the ability to charge the machines on surface.

“Our wider electrification plans are being influenced by the maturity of the technology; it may be more beneficial to wait until the adoption rate and learnings increase before we commit,” he added.

Even with the planned integration of such advanced technology at Venetia Underground, Madondo says De Beers still has some way to go to achieve the FutureSmart Mining innovation-led approach to sustainable mining that its parent company, Anglo American, advocates for.

“The pinnacle of De Beers mining expertise will probably be realised when we get to rollout our Diamond FutureSmart Mining, which ultimately is a mine design that we can use to develop future mines that make mining safer, more efficient, more sustainable and with a smaller environmental footprint,” he said.

“Of course, Venetia is certainly a steppingstone to that, but we will hopefully apply the learnings from Venetia for Jwaneng Underground (in Botswana) in the not-too-distant future. That could represent a different, more technologically advanced proposition where all processes are setup to benefit from the latest innovations.”

He concluded: “This will ensure we help create a healthy environment, that we catalyse thriving communities, and that we build trust as a corporate leader. We are shaping a future that creates shared value for all our stakeholders.”

WH Auctioneers and Ritchie Bros to hold Majwe Mining JV equipment auction

In conjunction with WH Auctioneers, Ritchie Bros is supporting a mining equipment auction in Jwaneng, Botswana, this week, with assets coming from the end-of-mine contract of the Majwe Mining Joint Venture.

The Botswana Mining Machinery Live Auction will be held on July 8.

“The two companies bring unrivalled expertise and experience in their respective fields,” Finlay Massey, Sales Director APAC, Ritchie Bros, said. “This is a live auction in Botswana with online bidding, hosted by WH Auctioneers with the support of Ritchie Bros. expertise, marketing efforts and our global database of buyers, which is second-to-none.”

On offer are Caterpillar 777D 85,000-litre water trucks, Caterpillar 834H and 854K wheel dozers, Caterpillar D10T tracked dozers, Caterpillar 16M motor graders, a Caterpillar 336DL tracked excavator, Terex TA100 and TA60 rigid dump trucks, Hyster 25 tyre handler, a Komatsu D375-5 tracked dozer, a Caterpillar 966 wheel loader, a Komatsu WA600 loader, Bell B20 articulated dump trucks, Manitou MHT780 and MRT2540 telehandlers, Atlas Copco drill rigs, crushers and screens, Lincoln Electric Vantage 500 welder/generators, and trucks and light delivery vehicles.

The auction will be conducted live on-site in Jwaneng, Botswana, on July 8 at 10:30AM SAST with webcast bidding available for overseas buyers. Those interested in bidding are urged to register to bid before the auction.

Back in 2019, the Majwe Mining Joint Venture was awarded a A$1.7 billion contract at Debswana Diamond Co’s Jwaneng Mine Cut-9 project in Botswana.

Majwe, a JV between Thiess (70%) and long-term local partner Bothakga Burrow Botswana (30%), was to provide full scope mining services over nine years, including drill and on-bench services, mine planning, equipment maintenance, load and haul, and mining operations.

In 2021, the contract was terminated by Debswana, with the Cut 9 operation transitioning to an owner-mining operation.

Thiess to play major role in Debswana Jwaneng diamond mine Cut-9 project

Thiess, through Majwe Mining Joint Venture (Majwe), has secured a A$1.7 billion ($1.2 billion) contract at Debswana Diamond Co’s Jwaneng Mine Cut-9 project in Botswana.

Majwe, a JV between Thiess (70%) and long-term local partner Bothakga Burrow Botswana (30%), will provide full scope mining services over nine years, including drill and on-bench services, mine planning, equipment maintenance, load and haul, and mining operations, it said.

This new volume-based contract follows Majwe’s successful completion of the Cut 8 project at the diamond mine in November 2018.

Michael Wright, CEO of CIMIC Group, the owners of Thiess, said: “This new contract strengthens Thiess’ presence in Botswana and builds on our operational and technical teams’ solid performance at Jwaneng since 2011.

CIMIC Group Mining and Minerals Executive and Thiess Managing Director, Douglas Thompson, said: “I am pleased to be extending our long-term relationship with Debswana Diamond Company and Majwe, delivering scalable and innovative solutions that are tailored to our client’s production and expansion needs.”

Last month, Basil Read Mining Botswana, a wholly owned subsidiary of Basil Read Mining, entered into an agreement with Thiess Botswana and Bothakga Burrow Botswana to sell its 28% interest in the Majwe JV to the two firms.

Jwaneng, reportedly the richest diamond mine in the world by value, produces more than 10 Mct per year of diamonds.

The most recently completed Cut-8 project, which took the 2.5 km by 1.5 km mine from a depth of 400 m to 650 m, ensured continuous production until at least 2024.

Cut-9, meanwhile, is expected to extend the life of mine to 2035 and yield an estimated 53 Mct of rough diamonds from 44 Mt of treated material, Debswana said.

Debswana will invest approximately $2 billion over the life of the project, with the company’s shareholders approving the budget for 2019 so that the next phase of work can commence.

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

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, a Component Rebuild Centre, which is expected to mature into a self-sustaining business within three years from the launch of the project, and additional local business development initiatives.

Basil Read subsidiary to sell out of Majwe Mining JV in Botswana

Basil Read Mining Botswana (BRMB), a wholly owned subsidiary of Basil Read Mining, has entered into an agreement with Thiess Botswana and Bothakga Burrow Botswana (BBB) to sell its 28% interest in the Majwe Mining joint venture to the two firms.

BRMB will sell 28 ordinary shares constituting 28% of the issued shares of Majwe for an amount of BWP85 million ($8.1 million) of which Thiess will acquire 10 ordinary shares and BBB will purchase 18 ordinary shares of the joint venture.

The joint venture dates to 2011 when entered into a pact with Leighton Botswana (later named Thiess Botswana) and BBB to bid for, and if successful, carry out the surface mining works project at Debswana’s Jwaneng diamond mine (pictured) Cut 8 contract mining project. On being awarded the contract in May 2011, the MMJV was incorporated.

The Cut 8 project was for a 66-month period ending in November 2016, but was extended through the addition of Cut 8.3, which ended on November 23, 2018.

In 2017, Debswana issued an expression of interest for the mining works project for the next stage of the Jwaneng mine development, known as the Cut 9 contract mining project. Majwe JV responded to this and was subsequently invited to submit a tender bid in February 2018.

Basil Read said the negotiations are still ongoing and at an advanced stage, with the project expected to commence this year.

The company said: “BRMB’s participation in the Cut 9 project would mean that BRMB continues being restricted from competing in Botswana as an independent entity, and thus limit its ability to unlock capital by growing and expanding its current business in Botswana.

“Participation in the Cut 9 project also requires the provision of both parent company and on-demand financial guarantees, further adding onerous obligations on BRMB. A call made on the guarantees would offset any returns from the project.

“Moreover, the shareholders of Majwe JV have been engaged in negotiations to increase the local citizen economic empowerment levels from the current 12% held by BBB up to 30% as per the tender requirement for the Cut 9 project. This will result in BRMB’s shareholding being diluted significantly.”

The company concluded: “Thus, the Basil Read group is of the view that the Majwe JV shareholding is a non-core asset. In our view, the required capital outlay can be used far more beneficially by funding the required plant and equipment replacements to pursue other opportunities for our mining business both in Botswana and elsewhere.”