Botswana’s Debswana terminates mining contract with Australia’s Thiess
12/01/2021 09:21
GABORONE, Jan 12 (Reuters) - 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)
(Reporting by Brian Benza
Editing by Tanisha Heiberg and Susan Fenton)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters
Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))