New!Daily live updates: important information about the coronavirus pandemicRead More
Debswana Jwaneng Diamond Mine
Jwaneng Diamond Mine

Debswana terminates Majwe Mining Cut 9 contract

1 Mins read

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.

Related posts

BTC profits drop by 8% to P77 million

1 Mins read
Botswana Telecommunications Corporation (BTCL) has reported a decline in profit after tax (PAT) for the half-year ended 30 September 2020. The PAT…

Botswana extends Lucara’s Karowe license to 2046

1 Mins read
Canada’s Lucara Diamond said Botswana has renewed the company’s mining license for its Karowe mine for another 25 years, paving the way to move the mine’s…

Botswana government spends P35million on creatives

2 Mins read
Minister of Youth Empowerment, Sport and Culture, Tumiso Rakgare says government has spent over P35 million to support and relieve the creative…
Be the first to get news!

We take you inside the companies and the topics that matter to you.

Leave a Reply

Your email address will not be published. Required fields are marked *