Approximately 300 mining workers at B2Gold’s Otjikoto Mine will face voluntary retrenchment this year as the mine approaches open pit closure, the Canadian-listed company announced in a notice to the Labour Commissioner.
The gold miner stated that mining production would taper down, requiring fewer personnel and necessitating a reduction in staff.
Currently, the mine employs approximately 890 employees.
“The anticipated retrenchment will impact employees across various departments within B2Gold Namibia. However, the company has implemented a voluntary retrenchment process as the first step in the retrenchment separation process. The voluntary separation process is scheduled to begin on April 15, 2024, creating an opportunity to provide those employees who want to exit willingly,” the notice read.
“If the required number of personnel is not reached during the voluntary separation process, impacted positions will be identified, and the selection criteria stipulated in B2Gold Namibia’s Retrenchment Procedure will be applied to identify personnel for compulsory retrenchment,” the company added.
Affected employees are primarily within the open pit mining department.
Confirming the notice and current developments, B2Gold Spokesperson Namasiku Nalisa said: “The open pit scaling down is a result of ore reserves being depleted and not because the mine is grappling with the impacts of volatile resource prices.”
She added that open pit mining will cease in 2025, resulting in workforce reduction, with a retrenchment agreement reached with the mining union on 6 December 2023
“The downscaling of open pit mining operations was communicated in 2023 to the workforce and all stakeholders of B2Gold Namibia. A retrenchment agreement that is fair to all parties was reached between B2Gold Namibia and the Mineworkers Union of Namibia MUN,” Nalisa said.
Last year, the gold miner announced its transition from open-pit gold ore extraction to underground mining to improve production. This decision followed the realisation of limited gold deposits in its open pit mine, which could not sustain operations beyond the approved Life of Mine of nine years beyond 2023.
However, processing and milling of low-grade stockpiles will continue until approximately 2031, contingent upon proving the economic viability of such activity.
B2Gold 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. B2Gold remains committed to its investment in Namibia, evidenced by its substantial exploration budget of N$171 million approved for the 2024 financial year.
