Name and Location
Venetia underground project, Limpopo, South Africa.

Client
De Beers Consolidated Mines (DBCM), a subsidiary of Anglo American.

Project Description
The Venetia mine, which officially opened on August 14, 1992, is currently the largest producer of diamonds in South Africa and accounts for about 40% of the country’s total yearly diamond production.

The mine is currently an openpit operation; however, following a successful feasibility study, development work began in late 2013 to build the new underground mining operation beneath the current operating openpit. It is currently the largest diamond mine development under way anywhere in the world. The new underground mine will extend the life of Venetia mine to beyond 2040 and replace the openpit production from 2022 and Venetia will remain South Africa’s largest diamond mine. During the construction period, employment will peak at about 4 000. After 2022, the underground operation will support 6 625 jobs, 1 482 of which will be in the mine and 5 143 elsewhere supporting mining activity.

Net Present Value/Internal Rate of Return
Not stated.

Value
De Beers stated in 2012 that it expected to invest about $2-billion (R20-billion at the 2012 exchange rate) in the Venetia underground mine to 2022, when the conversion from openpit to underground and the production of the first ore are expected to begin.

Duration
The underground operation is expected to become the source of ore at Venetia from late 2022.

Latest Developments
Power and automation technology company ASEA Brown Boveri (ABB) will supply four hoists to South Africa’s largest diamond producer, DBCM.

The order includes one double-drum hoist for personnel and materials conveyance, two friction hoists for production and one single drum hoist for service duty at the Venetia diamond mine.

This is the first time that multiple, turnkey, large friction mine hoists have been delivered to the South African mining industry, ABB has said.

The company will design, supply, manufacture, install and commission all four hoists. This includes hoist mechanicals, motors and electrical drive and control, which are all certified to the highest safety levels, notes ABB.

The installation will start in July 2018 and all four hoists should be operational in April 2020.

Underground mining is expected to extend the site’s operational life into the 2040s, with the potential to deliver an estimated 94-million carats.

To extend the life of the mine De Beers and diversified miner Anglo American decided in 2007 to build a new underground mine beneath the openpit.

De Beers, which is 85%-owned by mining company Anglo American, is sinking two new shafts adjacent to the existing openpit to access deeper ore reserves that cannot be reached through conventional surface mining techniques.

Murray & Roberts Cementation is sinking, equipping and commissioning the two vertical shafts and is responsible for the development of the first part of the decline from the surface to 900 m below ground. According to De Beers’ website, the tunnel decline from the surface providing access to the underground mine is now more than 1 000 m.

The shafts, each 7 m in diameter, are being sunk to a depth of 1 080 m, an operation that will continue to 2018.

Key Contracts and Suppliers
Murray & Roberts (M&R) Cementation (development of underground mine), Basil Read Civils, Conco, Sandvik, Barloworld, ABB (four hoists).

On Budget and on Time?
The project is on schedule to produce its first diamonds in 2022.

Contact Details for Project Information
DBCM, email info@debeersgroup.com.
M&R Cementation group communications executive Ed Jardim, cell +27 83 357 6282 or
email eduard.jardim@murrob.com; or tel +27 11 201 5000, fax +27 11 201 5500 or email info.cementation@murrob.com.
Basil Read Civils, tel +27 11 418 6300 or fax +27 11 418 6333.
Conco, tel +27 11 805 4281, fax +27 11 805 1132 or email conco@conco.co.za.
Sandvik, tel +27 11 929 5300.
Barloworld, tel +27 11 445 1000 or fax +27 11 444 3643.