Botswana’s Debswana terminates mining contract with Australia’s Thiess

Debswana Mining Company, owned by De Beers and the Botswana government, said on Tuesday it has terminated a $1.3 billion contract with a unit of Australia’s Thiess to extend the lifespan of its Jwaneng diamond mine and will carry out the project in-house.

Debswana, among the world’s largest diamond producers, declined to provide a reason for terminating the contract for the extension project, known as Cut 9, which was awarded to Majwe Mining in 2019.

The nine-year project is expected to extend the life of Debswana’s flagship mine to 2035, yielding an estimated 53 million carats of rough diamonds.

“The Cut 9 operation will transition to an owner-mining operation, with some of the key services and resources, such as

labour, being provided by contractors/service providers to Jwaneng Mine,” Debswana’s head of corporate affairs, Rachel Mothibatsela, said in a statement.

Debswana originally signed a 1.7 billion Australian dollar ($1.31 billion) contract with Majwe Mining, a joint venture 70% owned by Australian mining services firm Thiess and 30% held by citizen-owned firm Bothakga Burrow.

Debswana has been hit by the impact of the coronavirus pandemic, which has dented demand for diamonds, and the company’s production fell 29% to 12.3 million carats in the first nine months of 2020.

($1 = 1.2940 Australian dollars)

Gh Extractives is an independent multimedia portal that seeks to provide credible information and news content to readers especially players in the extractive sector in Ghana, Africa and beyond. It also provides a unique platform for players in the energy sector to market their products and reach a wider audience

View All Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.