B2Gold ploughs N$45m into exploration

CANADIAN-owned B2Gold, which operates the Otjikoto gold mine in northern Namibia, has invested about N$45 million in exploration with hopes of finding new deposits after having depleted open pit gold ore reserves at their current operations.

This comes after announcing that they are now implementing a two-and-a-half-year scaling down operation that will see them focusing on underground mining with a lean staff complement.

B2Gold country manager John Roos told The Namibian on Monday the company will wind down operations on their open pit, but are pinning hopes on underground mining in the future.

He said attention is also being put into the rehabilitation of the mining site to ensure conformity with Namibian environmental laws and expected standards for flora and fauna in the area.

“We have done our part in making sure that we engage with the unions and we are on the same page. We are also certain that the underground mining venture will be profitable and sustainable for the future. It was always expected that we would come to this point because the lifespan of mines is limited,” he said.

“Our open pit operations will scale down in 2024 and come to an end in 2025 and underground mining will end in 2026.

That is if we don’t find anything more through our exploration work. The company invests quite significantly in exploration.

This year up to September, we’ve invested close to N$45 million in exploration around the pit, trying to find more underground resources. So, we can only hope that we’re successful with that expansion into the future on an underground mine basis.”

Roos said company estimates indicate financial viability, aligning with long-term plans until 2026.

However, ongoing exploration investments may extend this timeline, should additional resources be discovered.

CONTRIBUTION OVER 10 YEARS

The mine began with commercial production in March 2015 and produced 161 614 ounces of gold in 2022, contributing nearly 16% of B2Gold’s total output last year.

“Over the past 10 years, our operations in Namibia have been a success story.

From the initiation of commercial production in 2015 to our current status n 2023, we’ve made substantial contributions to the Namibian economy,” he said.

The figures presented outline a nearly N$19,5 billion contribution to the economy.

“A significant portion, approximately N$12 billion, was directed towards local procurement, underscoring our commitment to supporting local businesses,” said Roos.

Additionally, the company’s contributions through corporate income taxes, royalties and export levies have played a pivotal role in bolstering the government’s fiscal reserves.

“We are looking forward to a very profitable 2023 with revenues exceeding N$7 billion and as you can imagine that’s also going to give a result in a very good sort of input into the Namibian fiscus for 2023,” said Roos.
RETRENCHMENT PLAN

Roos said the closure won’t be an abrupt halt, but a gradual process spread over the next two and a half years.

“We’re committed to maintaining a scaled-down, but stable operation with around 250 employees until 2032. So, there will be continued operations at the Otjikoto mine, just on a much smaller scale.”

He said there have been negotiations with different stakeholders and unions with regards to settlement or severance packages.

“We are negotiating and so now we are looking at how we can improve on that when it comes to monetary payments to employees in terms of retrenchments,” said Roos.