B2Gold Namibia will start a phased mine closure process which will affect the mine site and its Windhoek office staff.
According to a statement signed by Eric Barnard, the mine’s general manager, and John Roos, B2Gold’s country manager, the mine is closing because of low reserves.
“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.
“The first gold was poured on 5 December 2014, and the operation reached commercial production on 1 March, 2015. The most recent approved life-of-mine plan indicates a current mine life of approximately nine years (beginning 2023) – unless a significant open-pit discovery or extension to the underground reserves is made,” the statement reads.
The mine, in which B2Gold holds a 90% interest, had a strong finish to 2022 and produced 161 614 ounces of gold – slightly below the revised guidance range of 165 000 to 175 000 ounces, and 18% lower compared to 2021.
The statement adds that based on the life-of-mine plan, the open-pit end of life would likely be the end of 2024, with open-pit mining output ramping down to 50% of production capacity in 2024.
“Accordingly, the last year of full open-pit mining production will be 2023. Processing and milling of low-grade stockpiles will continue until approximately 2031 (provided this activity is proven to be economically viable),” it says.
B2Gold expressed commitment to the Otjikoto Mine and investing a considerable amount of money in exploration activities around the mine, with the hopes that the project’s life can be extended.
“Employees will be informed of the plans and critical timelines for the mine. They will be provided with accurate information on payouts and notice periods, including their rights and any other relevant entitlements,” says the statement.
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