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Retrenchments loom at B2Gold as lifespan nears end

STAFF REPORTER
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 activities

The 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 faith

B2Gold 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.

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Namibian Sun 2024-05-17

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Premier League: Manchester United 3 vs 2 Newcastle | Brighton 1 vs 2 Chelsea | Tottenham Hotspur 0 vs 2 Manchester City LaLiga: Real Sociedad 1 vs 0 Valencia | Almería 0 vs 2 Barcelona | Las Palmas 2 vs 2 Real Betis | Celta Vigo 2 vs 1 Athletic Club | Getafe 0 vs 3 Atletico Madrid | Sevilla 0 vs 1 Cadiz | Rayo Vallecano 2 vs 1 Granada | Girona 0 vs 1 Villarreal | Real Madrid 5 vs 0 Deportivo Alaves | Osasuna 1 vs 1 Mallorca European Championships Qualifying: Leeds United 4 vs 0 Norwich City English Championship: Leeds United 4 vs 0 Norwich City Katima Mulilo: 11° | 31° Rundu: 11° | 30° Eenhana: 11° | 31° Oshakati: 12° | 30° Ruacana: 12° | 31° Tsumeb: 13° | 29° Otjiwarongo: 11° | 27° Omaruru: 11° | 30° Windhoek: 11° | 26° Gobabis: 12° | 27° Henties Bay: 19° | 35° Wind speed: 35km/h, Wind direction: E, Low tide: 05:49, High tide: 12:03, Low Tide: 17:43, High tide: 00:16 Swakopmund: 20° | 26° Wind speed: 27km/h, Wind direction: E, Low tide: 05:47, High tide: 12:01, Low Tide: 17:41, High tide: 00:14 Walvis Bay: 23° | 33° Wind speed: 28km/h, Wind direction: E, Low tide: 05:47, High tide: 12:00, Low Tide: 17:41, High tide: 00:13 Rehoboth: 12° | 27° Mariental: 15° | 29° Keetmanshoop: 17° | 29° Aranos: 15° | 28° Lüderitz: 20° | 32° Ariamsvlei: 16° | 30° Oranjemund: 15° | 25° Luanda: 24° | 27° Gaborone: 16° | 30° Lubumbashi: 11° | 27° Mbabane: 13° | 22° Maseru: 9° | 23° Antananarivo: 12° | 27° Lilongwe: 15° | 28° Maputo: 19° | 28° Windhoek: 11° | 26° Cape Town: 15° | 22° Durban: 17° | 23° Johannesburg: 15° | 24° Dar es Salaam: 23° | 32° Lusaka: 14° | 27° Harare: 13° | 26° Currency: GBP to NAD 23.06 | EUR to NAD 19.79 | CNY to NAD 2.53 | USD to NAD 18.26 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.71 | ZWL to NAD 0.04 | BRL to NAD 3.54 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 134.35 | USD to AOA 847.42 | USD to BWP 13.49 | USD to EGP 46.86 | USD to KES 130.48 | USD to NGN 1520 | USD to ZAR 18.28 | USD to ZMW 25.5 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 79509 Up +0.19% | Namibian Stock Exchange (NSX) Overall Index 1740.48 Up +0.45% | Casablanca Stock Exchange (CSE) MASI 13411.39 Down -0.07% | Egyptian Exchange (EGX) 30 Index 26142.84 Up +3.27% | Botswana Stock Exchange (BSE) DCI 9151.06 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 388.44/OZ UP +0.44% | Copper US$ 4.94/lb UP +1.93% | Zinc US$ 2 986.30/T UP 0.28% | Brent Crude Oil US$ 83.58/BBP DOWN -0.0023 | Platinum US$ 1 059.61/OZ DOWN -0.0019 Sport results: Premier League: Manchester United 3 vs 2 Newcastle | Brighton 1 vs 2 Chelsea | Tottenham Hotspur 0 vs 2 Manchester City LaLiga: Real Sociedad 1 vs 0 Valencia | Almería 0 vs 2 Barcelona | Las Palmas 2 vs 2 Real Betis | Celta Vigo 2 vs 1 Athletic Club | Getafe 0 vs 3 Atletico Madrid | Sevilla 0 vs 1 Cadiz | Rayo Vallecano 2 vs 1 Granada | Girona 0 vs 1 Villarreal | Real Madrid 5 vs 0 Deportivo Alaves | Osasuna 1 vs 1 Mallorca European Championships Qualifying: Leeds United 4 vs 0 Norwich City English Championship: Leeds United 4 vs 0 Norwich City Weather: Katima Mulilo: 11° | 31° Rundu: 11° | 30° Eenhana: 11° | 31° Oshakati: 12° | 30° Ruacana: 12° | 31° Tsumeb: 13° | 29° Otjiwarongo: 11° | 27° Omaruru: 11° | 30° Windhoek: 11° | 26° Gobabis: 12° | 27° Henties Bay: 19° | 35° Wind speed: 35km/h, Wind direction: E, Low tide: 05:49, High tide: 12:03, Low Tide: 17:43, High tide: 00:16 Swakopmund: 20° | 26° Wind speed: 27km/h, Wind direction: E, Low tide: 05:47, High tide: 12:01, Low Tide: 17:41, High tide: 00:14 Walvis Bay: 23° | 33° Wind speed: 28km/h, Wind direction: E, Low tide: 05:47, High tide: 12:00, Low Tide: 17:41, High tide: 00:13 Rehoboth: 12° | 27° Mariental: 15° | 29° Keetmanshoop: 17° | 29° Aranos: 15° | 28° Lüderitz: 20° | 32° Ariamsvlei: 16° | 30° Oranjemund: 15° | 25° Luanda: 24° | 27° Gaborone: 16° | 30° Lubumbashi: 11° | 27° Mbabane: 13° | 22° Maseru: 9° | 23° Antananarivo: 12° | 27° Lilongwe: 15° | 28° Maputo: 19° | 28° Windhoek: 11° | 26° Cape Town: 15° | 22° Durban: 17° | 23° Johannesburg: 15° | 24° Dar es Salaam: 23° | 32° Lusaka: 14° | 27° Harare: 13° | 26° Economic Indicators: Currency: GBP to NAD 23.06 | EUR to NAD 19.79 | CNY to NAD 2.53 | USD to NAD 18.26 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.71 | ZWL to NAD 0.04 | BRL to NAD 3.54 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 134.35 | USD to AOA 847.42 | USD to BWP 13.49 | USD to EGP 46.86 | USD to KES 130.48 | USD to NGN 1520 | USD to ZAR 18.28 | USD to ZMW 25.5 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 79509 Up +0.19% | Namibian Stock Exchange (NSX) Overall Index 1740.48 Up +0.45% | Casablanca Stock Exchange (CSE) MASI 13411.39 Down -0.07% | Egyptian Exchange (EGX) 30 Index 26142.84 Up +3.27% | Botswana Stock Exchange (BSE) DCI 9151.06 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 388.44/OZ UP +0.44% | Copper US$ 4.94/lb UP +1.93% | Zinc US$ 2 986.30/T UP 0.28% | Brent Crude Oil US$ 83.58/BBP DOWN -0.0023 | Platinum US$ 1 059.61/OZ DOWN -0.0019