The Otjikoto B2Gold Mine Namibia on Thursday announced that it is commencing with the implementation of its phased mine closure plan.

The mine in a media statement on Thursday said it has decided to start communicating with the affected employees and stakeholders before the plan takes effect, noting that the downscaling of its operations in line with the closure plan is set to commence in the first quarter of 2024.

Situated about 70 kilometres north of Otjiwarongo, B2Gold acquired the Otjikoto Gold Mine from Auryx Gold in 2011, and the acquisition was followed by construction activities from April 2013 until the last quarter of 2014, when construction was completed.

Its first gold was poured in December 2014 with the operations reaching the commercial production level in March 2015.

The active lifespan of the mine including the processing of low-grade stockpiles of gold was estimated to be nine years, which is the beginning of 2023 unless a significant open pit discovery or extension to the underground reserves was made possible for the lifespan plan to increase.

Based on the most recent life of mine plan, the open pit end of life is likely the end in 2024, with only 50 per cent of the mining tonnage capacity which is required in 2024.

“Accordingly, the last year of the full open pit mining production had been set for 2023, while the processing and milling of a low-grade stockpile of gold will continue until approximately 2031, which depends on proving the economic viability of this activity,” it said.

So far the company has considered an alternative option of retrenchment of workers based on the ramp-down schedule and the operational requirements, said the mine.

The retrenchment policy and criteria are currently unavailable as consultations with the Mine Workers Union of Namibia (MUN) have not been finalised, it said.

The company promised to negotiate retrenchments in good faith and to be transparent in its communication.

Source: The Namibian Press Agency