B2Gold Namibia’s Otjikoto gold mine is transitioning from open-pit gold ore extraction to underground mining in a bid to improve production.
The company’s board chairperson Leake Hangala said the move comes as the company has depleted its open-pit resources, signalling a strategic shift in its mining approach.
The decision follows a decade-long journey marked by the challenges and adaptability of open-pit mining. Hangala emphasised the necessity to explore new avenues for resource extraction, reflecting on the company’s evolution.
“The technological and mechanical aspects of our mine were quite intricate when it operated as an open-pit mine. However, it has undergone a modern transformation, shifting from open-pit to advanced underground mining. In the contemporary mining landscape, sophisticated equipment, including the integration of artificial intelligence, is imperative for underground operations. This transition is a source of great pride for us,” he said.
Hangala added that when establishing a mine, a crucial aspect is predicting the longevity of the reserves.
“Typically, companies refrain from making predictions beyond a decade, unless endowed with substantial reserves, such as those observed in Latin America’s copper mines. B2Gold faced a similar scenario during our initial stages,” he explained.
Hangala added that the initial forecast was for a 10-year lifespan, under the assumption that the surface ore would persist, however, the company’s endeavours to explore concepts for open-pit mining have proven futile.
This comes as open pit mining operations at the Otjikoto Mine are scheduled to ramp down in 2024 and conclude in 2025, in line with the original Otjikoto life of mine resource.
Meanwhile, processing operations will continue until economically viable stockpiles are exhausted in approximately 2031.
Underground operations are projected to continue until 2026 with the potential to extend operations if the ongoing exploration programme successfully identifies more mineral deposits.
Country Manager John Ross said in the eight-year period since commercial production was declared (from March 2015 up to 31 December 2022), B2Gold Namibia contributed N$19.5 billion to the Namibian economy.
Furthermore, over 76% of procurement in 2022 came from in-country purchases, with approximately N$16 million spent directly on small- and medium-sized enterprises within the mine’s area of influence.
“Since commercial production was achieved in 2015, the company has spent over N$12 billion on local procurement. Of its total supplier spend, approximately 80% relates to spending on Namibian suppliers of goods and services,” he said.
For 2023, the Otjikoto Mine is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.87 g/t gold, with a process gold recovery rate of 98.0%.
