De Beers Group Decides to Go Ahead with Closure of Voorspoed Mine

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The Board of De Beers Consolidated Mines Proprietary Limited (DBCM), part of the De Beers Group, has taken the decision “to proceed with the responsible closure and rehabilitation of Voorspoed Mine in the Free State Province”, the Company announced yesterday.

The Board of De Beers Consolidated Mines Proprietary Limited (DBCM), part of the De Beers Group, has taken the decision “to proceed with the responsible closure and rehabilitation of Voorspoed Mine in the Free State Province”, the Company announced yesterday.

“This decision follows an extensive, transparent and comprehensive disposal process, which involved a rigorous due diligence exercise on the bidders to acquire the mine,” De Beers added.

The Company said this step was being taken as it had not succeeded in identifying a “suitable operator that met the specified criteria” and hence the responsible closure process will now be initiated “in accordance with the company’s values and with due consideration of employees and host communities”.

Phillip Barton, DBCM CEO, said: “Our priority throughout the disposal process has always been the safety and wellbeing of our employees at Voorspoed Mine and we were committed to ensuring that any potential future operator would not only have the required technical and financial capability, but also values that are aligned with those of DBCM. Unfortunately, we have not been able to identify a bidder that met the necessary criteria and so we have reluctantly taken the decision to close the operation, in a responsible manner, as it is no longer economically viable for DBCM to operate the mine. We do not underestimate the impact this will have on Voorspoed Mine’s employees and we have put in place appropriate support structures.

“When we opened the mine on 4 November 2008, the expected operating Life of Mine was approximately 10 years. With a young workforce, the mine has been managed and operated in an exemplary manner, of significance being the safety achievements in 2017 for the ‘Best Safety Performance in Class’ and ‘Best Improved Safety Performance’ for no Lost Time Injuries between 1 October 2014 and 14 June 2018 and no Medical Treatment Cases since 16 June 2015.”

De Beers Group reiterated its commitment to ensuring that the closure process commences in consultation with its key stakeholders – employees, the union, host communities and the Department of Mineral Resources (DMR) – in a transparent and responsible manner, while continuing to uphold the highest safety standards at the mine until its closure at the end of this year.

The DMR, through the office of the Director General, has raised the issue of job losses in the mining sector and mines being placed on care and maintenance was raised. “The Director General requested that DBCM runs its closure process in parallel with a separate process through which the DMR will seek to identify and propose an operator capable of purchasing Voorspoed Mine (Proposed Operator),” De Beers explained.

In response, DBCM has confirmed that it is “in principle” not opposed to the DMR’s request of embarking on a process to identify a Proposed Operator within a 30-day period commencing on 1 August 2018 and ending on 31 August 2018. “DBCM will engage further with the DMR in relation to the proposal in order to understand and finalise the basis upon which it will be undertaken,” De Beers stated.

Further, the Company stressed that in South Africa the De Beers Group also operates the Venetia Mine in Limpopo Province and is currently making its largest ever investment in South Africa with a US$ 2 billion project to take the mine underground and extend its operating life into the 2040’s.

News Source: gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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