Retrenchments loom at B2Gold as lifespan nears end

Canadian mining company B2Gold yesterday informed its Namibian employees of looming retrenchments, as its Otjikoto mine outside Otjiwarongo enters its last nine years of commercial viability.B2Gold Namibia country manager John Roos and Otjikoto mine general manager Eric Barnard delivered the news in a joint letter, saying the lay-offs will affect employees at both the mine and the Windhoek head office.B2Gold acquired the Otjikoto gold mine from Auryx Gold in 2011. Construction commenced in April 2013 and was completed in the last quarter of 2014. The first gold was poured in December 2014 and the operation reached commercial production in March 2015.In the letter to staff, Roos and Barnard said the most recent approved life-of-mine plan indicates a current mine life of approximately nine years, from 2023.This is the official position unless a significant open-pit discovery or extension to the underground reserves is discovered, the bosses said.“Based on the [life-of-mine plan], the open pit end-of-life will likely be the end of 2024, with open-pit mining output ramping down to 50% of production capacity in 2024,” it read.“Accordingly, the last year of full open-pit mining production will be 2023. Processing and milling of low-grade stockpiles will continue until approximately 2031, provided that this activity is proven to be economically viable.”Exploration activitiesThe company said it remains committed to the Otjikoto mine and will continue to invest a considerable amount of money in exploration activities in the area, with hopes that the project’s life can be extended.“The workforce reduction plan is based on a ramp-down schedule which was finalised during 2022. This schedule will continue to be updated regularly and will impact annual budgets accordingly,” management said.“The reason for an intended retrenchment for the purpose of reduction of the workforce is applicable when there is a re-organisation or transfer of the business or the discontinuance or reduction of the business for economic or technological reasons.“The gradual closure of a section or part of the mine would thus qualify under this section. In this case, the reason for the workforce reduction is economical, although, in an actual sense, it is a natural cause.”In good faithB2Gold further said it is committed to negotiating in good faith and with transparency - including with the Mineworkers Union of Namibia (MUN) - and will share the retrenchment agreement once it has been finalised.It is not yet known how many employees will be affected by the move to retrench.The Canadian company plans to invest N$1.33 billion into the Otjikoto mine as part of capital expenditure for 2023, The Brief reported in January.The Otjikoto mine produced 60 068 ounces of gold in the fourth quarter of 2022, which included a monthly production record of 30 493 ounces in December.

Retrenchments loom at B2Gold as lifespan nears end

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Namibian Sun 2025-12-12

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Retrenchments loom at B2Gold as lifespan nears end

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Namibian Sun 2025-12-12

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