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
Since construction, led by Murray & Roberts, began in 2014, there has been steady progress and Venetia underground is expected to meet the 2022 target date for completion.

Senior site manager at the project Richard Greig has said that the production and services shafts are currently at 140 m and 100 m deep respectively, and will eventually reach a depth of 1 000 m.

The 7.5 km decline access tunnel is being developed at a rate of 1.7 km/y, with the first 500 m already in place. “This will also meet our standard of safety, as it can double as an exit or access point in the case of an emergency,” he has noted.

Greig adds that the construction of underground tunnels and infrastructure will take place from the shafts. The decline ramp will reach a depth of just 1 km and will provide access to the first orebodies.

Venetia mine MD Ludwig Von Maltitz notes that the conversion to an underground mining operation will result in 80% of the mine remaining unchanged, with the treatment plants, engineering services, mining support infrastructure and employee supporting services continuing as they are.

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.