Name of the Project
Venetia underground project (VUP).

Location
Venetia mine in Limpopo, South Africa.

Project Owner/s
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.

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 2023, meaning Venetia will remain South Africa’s largest diamond mine.

Potential Job Creation
During the VUP construction period, employment will peak at about 2 000. There are currently 1 300 people working on the VUP, and the workforce is predicted to number around 2 000 from late 2020 through to late 2021.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
De Beers stated in 2012 that it expected to invest about $2-billion in the VUP to 2023, when the conversion from openpit to underground and the production of first ore are expected to begin.

Planned Start /End Date
The underground operation is expected to deliver first production at Venetia during 2022.

Latest Developments
De Beers reported in its production report for the fourth quarter of 2018, released in February this year, production guidance of between 31-million carats to 33-million carats, subject to trading conditions.

The lower production is driven by the process of exiting from the Venetia openpit with the underground becoming the principal source of ore from 2023.

Key Contracts and Suppliers
Murray & Roberts (M&R) Cementation (development of underground mine); Worley Parsons, Stefanutti & Stocks, BBE, Sandvik; and ABB are amongst the contractors involved in the project..

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

Contact Details for Project Information
DBCM senior communications manager Jackie Mapiloko, tel +27 11 374 7173 or email jackie.mapiloko@debeersgroup.com.