The Chamber of Mines is optimistic about job opportunities in the country’s mining sector despite retrenchment plans announced by gold miner, B2Gold, which recently announced a phased closure of its Otjikoto mine beginning in the first quarter of 2024.
Chamber of Mines CEO Veston Malango said although the development was regrettable, he acknowledged that job losses are an unavoidable reality in the mining industry and stated that intensified exploration activities can help avert the undesired outcome of slashing the workforce.
According to reports, about 1,000 employees are set to lose their jobs due to the low reserves of extractable gold.
“Unfortunately that is just the nature of mining, every time a mine opens there is always a life projection depending on the estimated available mineral resources. So in this regard, as announced the reserves of extractable gold are low hence can no longer continue operating on a full scale,” Malango told The Brief.
The gold producer stated that the last year of full open-pit mining production will be 2023. The Life of Mine (LoM) Plan indicates a current lifetime (including the processing of low-grade stockpiles) of approximately nine years (beginning 2023), unless a significant open pit discovery or extension to the underground reserves is discovered.
B2Gold Namibia, a 90% owned subsidiary of B2Gold Corp, acquired the Otjikoto Gold Mine from Auryx Gold in 2011. Construction of the mine commenced in April 2013 and was completed in the last quarter of 2014. First gold was poured in December 2014, and the operation reached commercial production in March 2015. Since then, the company has sold gold worth N$9 billion and had an initial investment of N$7.5 billion.
Malango noted that the closure of the mine should not only be seen in a bad light, as there are potential mines in the horizon that will likely open soon and provide thousands of employment opportunities. He said, “we knew [Chamber of Mines] including the ministry that this was likely to happen as often indicated in annual financial reports.”
Malango sees potential with the planned resumption of Langer Henrich mine, Osino, Okandjande graphite mine.
He said: “more jobs are lined up as opposed to what will be lost. In fact, we, as a chamber, often keep contact with all employees as we seek employment for them in other mines.”
The CEO urged Namibia to work towards enriching its secondary sector so that it can carryout manufacturing and value addition. “About 80% of what is generated stays in Namibia through the secondary sector, providing employment, services, accommodation, while only 20% which is in profit goes out,” he said.
“Rather we should work towards enriching our secondary sector so that we can limit the amount of imported equipment and services, which often result in money leaving the country.”
Malango also stressed that the Chamber is pleased that 97% of mining jobs are given to Namibians and only 3% is outsourced human resource.
