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Debswana Jwaneng Diamond Mine
Jwaneng Diamond Mine
BotswanaEconomy

Debswana terminates Majwe Mining Cut 9 contract

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Debswana Mining Company, owned by De Beers and the Botswana government, said on Tuesday it has terminated a $1.3 billion contract with Majwe Mining ( a joint venture between Bothakga Burrow Botswana and 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.

On the press statement, it reads as follows;

Debswana has made a decision to terminate the Majwe Mining Cut 9 contract effective 4th January 2021. In accordance with the termination for convenience requirements of the contract, a 90-day notice period shall run from this date (04 January 2021). Safety is Debswana’s number one priority and we will uphold zero harm throughout the transition period and beyond. Debswana and Majwe Mining will work together to ensure a smooth and efficient transition process and is committed to ensuring that the mining operations are not adversely impacted by this transition. 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. In this regard, Debswana remains committed to its Citizen Economic Empowerment Policy (CEEP). Debswana Management and the Board of Directors would like to extend their gratitude to Majwe Mining for their contribution in Cut 8, Cut 8.3, and the start-up of Cut 9, since 2011.

Debswana’s head of corporate affairs, Rachel Mothibatsela, said in a statement.

The cut-9 projects created more than 1, 000 jobs, the majority of which are Botswana

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.

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