Name of the Project
Cut 8 project.
Location
Jwaneng diamond mine, Botswana.
Client
Debswana – a joint venture (JV) between the government of Botswana and De Beers.
Project Description
The project involves a major extension at the Jwaneng mine.
The project, known as Cut 8, will ensure profitable and continuous production at the mine until at least 2025.
The project entails the removal of about 500-million tonnes of waste rock to allow diamond miners to access 91-million tons of ore that will yield about 102-million carats of diamonds.
The waste stripping will directly affect existing parts of the mine, with some existing buildings and infrastructure having to be moved or modified.
It also requires a large amount of new infrastructure to be built and installed.
The fact that the waste profile is so large will move Jwaneng towards the status of being one of the world’s super pits.
Jobs to be created
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
Debswana invested $500-million in the infrastructure construction project between 2009 and 2012.
Taking into account all project stages, including feasibility, design, implementation and mining operations, as well as the cost of plant and equipment, the estimated total project investment is likely to be $3-billion over the next 15 years.
Duration
The Cut 8 project began mid-2009 with early works in preparation for the construction, which started at the end of that year.
Early construction prepared the northern part of the pit for Cut 8 Phase 1 mining to start in January 2010.
This was followed by three years of construction and demolition to progressively make more areas of the pit accessible for Cut 8 mining.
Full access to the pit was achieved during 2011 and mining started on the central section in October 2011.
Construction was completed by mid-2012.
Latest Developments
Debswana has started processing ore from Cut 8.
About 88% of an estimated 500-million tonnes of waste above diamond bearing ore had been stripped away by the end of March.
Ore from the mine expansion project is now being delivered to the main treatment plant.
Key Contracts and Suppliers
Fluor Corporation (feasibility study and engineering, procurement and construction management); Bateman Botswana (engineering); Basil Read Bothakga Burrow JV (Phase 1 mining contractor); and Majwe JV (mining services contract for Phase 2).
On Budget and on Time?
The project was completed within the original budget of $500-million and all major milestones were achieved to enable Cut 8 mining to proceed without major disruptions.
Contact Details for Project Information
De Beers Botswana, tel +267 361 5205.
Debswana, tel +267 361 4216.