Ghaghoo Mine faces final closure

Down and out: Ghaghoo was the country's first underground diamond mine
Down and out: Ghaghoo was the country's first underground diamond mine

Gem Diamonds, the owner of the Ghaghoo Diamond Mine in the Central Kalahari Game Reserve (CKGR), is considering a final closure of the operation after failing to secure a buyer over the last six years of suspended activities.

Since February 2017, Ghaghoo Mine has been on care and maintenance activities which entail keeping the mine's infrastructure in prime condition in preparation for a possible reopening.

However, after prioritising a sale of the mine last year and watching a planned takeover deal with Botswana Diamonds fail in May, Gem Diamonds directors this week indicated they were moving to final closure in the CKGR.

Writing in the company’s annual report, directors said various alternatives, including a closure, were being discussed with affected stakeholders.

Last year, Gem Diamonds spent $1.9 million on care and maintenance activities at Ghaghoo, down from $2.1 million in 2021. Directors said the carrying value of the remaining assets had slipped to negative from zero in 2021. Final closure of the mine will trigger environmental rehabilitation obligations on Gem Diamonds in line with the country’s laws.

Ghaghoo, which was the country’s first underground diamond mine, was placed under care and maintenance in February 2017 due to depressed diamond prices. At least 250 workers had their contracts terminated as a result.

Editor's Comment
Something ought to be done about deadly A3 Road

The accident which happened near Marapong village comes after yet another horrific accident which claimed 16 lives in July last year near Hubona. These stats don’t include other accidents where fatalities were not as many as the two.While several factors may have contributed to the two accidents and many others, many believe the biggest with that road is the bad state that the road is in. Unconfirmed reports in the most recent accident state...

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