Canadian gold miner B2Gold has announced a phased closure of its Otjikoto Mine due to 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.
The miner said the phased downscaling of operations is scheduled to commence during the first quarter of 2024.
“The Life of Mine (LoM) Plan indicates a current lifetime (including the processing of low-grade stockpiles) of approximately nine years (beginning 2023) – unless a significant open pit discovery or extension to the underground reserves is discovered. Based on the most recent LoM, the open pit end of life will likely be the end of 2024, with only 50% mining tonnage capacity required in 2024,” the miner said on Thursday.
The gold producer said the last year of full open pit mining production will be 2023.
“Processing and milling of low-grade stockpiles will continue until approximately 2031 (this is dependent on proving the economic viability of this activity). B2Gold remains committed to the Otjikoto Mine and continues to invest a considerable amount of money in exploration with the hopes that the project’s life can be extended.”
The listed miner said it has begun retrenchment negotiations with the Mine Workers Union of Namibia (MUN).
“The Company has considered alternative options to retrenchment; however, given the LoM, these are not viable and sustainable. Retrenchments will be based on the ramp-down schedule and operational requirements.”
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.
