Sunday, June 16, 2024

Jwaneng mine sparkles as De Beers output rises in third quarter

Output from Debswana Diamond Company boosted De Beers production in the third quarter, according to the latest report released this week.

The Anglo American plc Interim Management Statement for the third quarter ended 30 September 2014 showed the Jwaneng mine has recovered since the mine disaster that claimed the life of an employee in 2012.

Anglo, the global diversified mining group with 85 percent stake in De Beers, said its diamond production increased by 6 percent to 8.2 million carats on the back of a good performance from Botswana.

“The increase was primarily due to a strong performance at Jwaneng, where higher grade material was accessed,” said the company, whose is primary listing is on the London Stock Exchange.
Debswana, a 50/50 joint venture between the Botswana government and De Beers, recovered 6.2 million carats in total. Jwaneng led the pack at 3.3 million carats, followed by Orapa at 2.7 million; Letlhakane at 157, 000 and Damtshaa mine with 83, 000.

Jwaneng Mine, which is coming from a lower base of the mine disaster, contributes about 60-70 percent to Debswana’s total revenue. The slope failure led to the death of one worker who was employed as a General Shift Foreman in the Mining department since March 2012.

The incident delayed production and affected carat output at the mine ÔÇô which is the world’s largest producer of gem diamonds. The incident was the second fatality as one contractor was hit by lightening ÔÇô making this the highest number of fatalities in the last four years.

Anglo however said the De Beers’ gains were affected by poor performance from operations in Canada, South Africa and Namibia.

“This was partially offset by slightly lower production across operations in Canada and South Africa, including Voorspoed, where a focus on waste movement to clear an area of unstable ground resulted in lower output. In addition, a planned plant upgrade at Venetia and a 19-day strike at Namdeb Land negatively impacted production volumes,” Anglo said.

The Gahcho Ku├® project in Canada is progressing successfully through permitting and licensing, recently securing the Land Use Permit and Ministerial approval of the Water Licence.

First production is expected in H2 2016, with full commercial production expected in 2017.
De Beers in South Africa recovered 1.1 million carats with Venetia leading at 776, 000 carats, followed by Kimberley at 207,000 carats while Voorspoed contributed 143,000 carats.

De Beers Canada contributed 394, 000 carats with Snap Lake production at 253, 000 carats and Victor contributing 141, 000 carats.

Production for Namdeb Holdings stood at 449, 000 carats with 293, 000 coming from the marine and 156, 000 carats from land.

Anglo’s Interim Management Statement for the third quarter ended 30 September 2014 is unaudited.

Financial Results for the year to 31 December 2014 will be announced on 13 February 2015. This report forms Anglo American plc’s Interim Management Statement for the purpose of the UK Listing Authority’s Disclosure and Transparency Rules.

Anglo American plc Interim Management Statement for the third quarter ended 30 September 2014.


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