Debswana pushes Cut 3 start date back
Chakalisa Dube | Monday August 14, 2023 06:00
Initially, Debswana had indicated that mining from Cut 3 would commence in 2027. The project is currently in the feasibility study phase and preparations for commissioning are set to start in 2025. Maoketsa explained at a stakeholder briefing last week that the reason for the delay is the ample stock from Cut 2 operations due to economic trends and market volatility.
He stated, "The stockpiles and available resources at Cut 2 will last us for several years." The Cut 3 Project involves expanding the 52-year-old Orapa Mine pit to access previously unreachable resources.
While details on the project are limited, it is known that around 96 million tonnes of waste will need removal to access the new orebody. Debswana anticipates that the first diamond sales from Cut 3 will occur in 2034, as by that time, the existing orebodies will likely be depleted. Maoketsa highlighted that Cut 3's implementation will extend the mine's lifespan by an additional 10 years, potentially pushing the mine's longevity to 2050. This project holds strategic importance for the Boteti sub-district, with the OLDM being crucial contributors. Orapa Mine, the country’s oldest, currently employs 2,785 employees and 3,000 indirectly.
More direct and indirect jobs as well as economic opportunities will be created once operations at Cut 3 are in full swing. With technology-driven operations, the mine aims to capitalise on the latest technological advancements, aligning with industry trends. Meanwhile, Debswana Managing Director Andrew Motsomi expressed a cautious outlook for the diamond market in 2023.
He noted the company expects a decline in rough diamond sales due to economic challenges in key markets like the United States and China. “We will be forced to review some of our functions to lessen operational costs and to align them with economic trends in countries where we sell our diamonds,” he said. Motsomi attributed some of these challenges to the ongoing conflict between Ukraine and Russia, which has led to global escalations in food and fuel prices, inflation, and interest rate hikes.
As a result, luxury purchases like diamond jewellery have been impacted. To navigate these challenges, Debswana is considering cost-reduction measures and stockpiling strategies.