The Ministry of Mines has issued a warning about the finite nature of mining resources after B2Gold announced the scaling down of operations at its Otjikoto Mine.
The development could lead to significant job losses.
The listed miner cited limited gold deposits in its open pit mine, which cannot sustain its operations beyond the approved Life of Mine of 9 years beginning this year.
“It must, however, be stressed and emphasized that mining companies operating in the country will not operate forever because these minerals, which they extract, are finite resources. Meaning, they have a certain existing limit when extraction begins, and they are non-renewable resources. After mining or extraction, these natural resources cannot be readily replaced by nature,” said Mines Ministry Spokesperson Andreas Simon.
He said the government was still to be informed about the number of employees to be affected by the Canadian miner’s decision. The listed miner has said it has begun retrenchment negotiations with the Mine Workers Union of Namibia (MUN).
“The news of a planned retrenchment is quite serious and a major reality at the same time. Nonetheless, the Ministry is not yet informed about the numbers of employees to be retrenched,” he said.
Simon said the survival of the mine was pinned on ongoing exploration activity being conducted. The miner said the phased downscaling of operations is scheduled to commence during the first quarter of 2024, while the last year of full open pit mining production will be this year.
According to its production figures, the Otjikoto Mine produced 60,068 ounces of gold in the fourth quarter of 2022, which included a monthly production record of 30,493 ounces of gold in December 2022.
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 Namibia is a 90% owned subsidiary of B2Gold Corp, with the remaining 10% owned by EVI Mining Company Limited, a Namibian broad-based economic empowerment group.
