Business

Debswana squeezes first carats from tailings dumps

Bonyongo
 
Bonyongo

The tailings dump represents the residue of ore processed at the mine over the decades and with modern technology, more diamonds are recoverable from the years of lower efficiency production methods and equipment.

Debswana expects the 37 million tonne dump to yield 900,000 carats annually for about 20 years, adding to other resource extension and expansion projects planned for the Orapa and Jwaneng open pits.

“The first carats were recovered in November,” Debswana managing director, Balisi Bonyongo, told a business briefing on Friday.

“Construction of the plant is complete and commissioning is happening now. That is another huge project on its own.”

Bonyongo revealed that Debswana’s board had approved a similar plant for Letlhakane Mine, where open pit operations are expected to end in 2017. In Letlhakane, Debswana expects its 83 million tonne tailings dump to yield 21 million carats being mined at the rate of 900,000 carats annually.

The MD said intensive studies for the extension and expansion of existing open pit mines had pointed to possible production of between 23 and 26 million per annum from all its operations up to 2050.

Under its ‘mining as per demand’ policy adopted after the 2008 global financial crisis, Debswana’s production has averaged 21.2 million carats, as it opts to keep stones in the ground, than stockpile during periods of market weakness.

Within the next five years, the diamond giant expects to finalise technical studies into the expansion of Orapa and Jwaneng, beyond the current activities taking place there.

“We envisage that in the next five years we will finish our planning and go to the board to receive the greenlight to start mining new projects at Jwaneng and Orapa.

“Mining is a sequential activity. There must be a post-Cut 8 at Jwaneng and a post-Cut 2 at Orapa. “Our technical guys are sweating hard to make sure we have an answer about our future.” Bonyongo explained that the current mines were expected to continue producing stones until 2030, when production from the expanded operations and – to a lesser extent – tailings dumps, would carry Debswana through to 2050 and beyond.

“We are doing extensive studies that require us to look at the skills of our people and adjust as we move towards implementation,” he said.

“We must understand the grade, distribution and geology even up to one kilometre down there.

“There has been a lot of fear that Debswana will close shop in 2030 and I’m saying with the assets we have and the understanding of the resources, we are in a position to plan for another future. “I have to be clear here because someone may say, ‘it’s for certain’. We are saying we have to be more certain about the picture and while some of our studies are advanced, others are at a preliminary stage.”

Debswana produced 18.3 million carats in the nine months to September 30, earnings revenues of P26.7 billion. The diamond group produced 16.4 million carats and revenues of P21.2 billion over the comparative period of last year.