Name of the Project
Venetia underground project (VUP).
Location
Venetia mine in Limpopo, South Africa.
Client
De Beers Consolidated Mines (DBCM), part of the De Beers Group, 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 shareholder approval, 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, meaning Venetia will remain South Africa’s largest diamond mine.
Potential Job Creation
During the VUP construction period, employment will peak at about 4 000. After 2022, the underground operation will support about 6 600 jobs, 1 480 of which will be in the mine and 5 140 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 in the VUP to 2022, when the conversion from openpit to underground and the production of first ore are expected to begin.
Duration
The underground operation is expected to deliver production at Venetia during 2022.
Latest Developments
The project is now well under way, with the underground operation expected to be the mine’s principal source of ore in 2023, extending the life-of-mine to 2046.
Key Contracts and Suppliers
Murray & Roberts (M&R) Cementation (development of underground mine); Basil Read Civils; Conco; Sandvik; Barloworld and 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 corporate communications manager Jackie Mapiloko, tel +27 11 374 7173 or email jackie.mapiloko@debeersgroup.com.