Name and Location
Venetia underground project, Limpopo, South Africa.

Client
De Beers Consolidated Mines South Africa (DBCM).

Project Description
The Venetia mine, which officially opened on August 14, 1992, is currently the largest producer of diamonds in South Africa and accounts for about 40% of the country’s total yearly diamond production.

The mine is currently an openpit operation; however, work started in late 2013 to build a new underground mining operation beneath the current operating openpit.

The new underground mine will extend the life of Venetia to beyond 2040 and replace the openpit production from 2021 as South Africa’s largest diamond mine. During the construction period between now and 2021, employment will peak at about 4 000. After 2021, the underground operation will support 6 625 jobs of which 1 482 will be in the mine and 5 143 elsewhere supporting mining activity.

Net Present Value/Internal Rate of Return
Not stated.

Value
De Beers expects to invest about R20-billion in the Venetia underground mine from now to 2021, when the conversion from openpit to underground is expected to begin.

Duration
Underground operations will begin production in 2021.

Latest Developments
Anglo American reported in its preliminary results in February this year that it continued to advance the development of the underground project, with the expectation of first underground production in 2021.

Key Contracts and Suppliers
M&R Cementation (development of underground mine), Basil Read Civils, Conco, Sandvik and Barloworld.

On Budget and on Time?
The project is on schedule to produce its first diamonds in 2021.

Contact Details for Project Information
DBCM, email info@debeersgroup.com.
M&R Cementation group communications executive, Ed Jardim, cell +27 83 357 6282 or email eduard.jardim@murrob.com; or tel +27 11 201 5000, fax +27 11 201 5500 or email info.cementation@murrob.com.
Basil Read Civils, tel +27 11 418 6300 or fax +27 11 418 6333.
Conco, tel +27 11 805 4281, fax +27 11 805 1132 or email conco@conco.co.za.
Sandvik, tel +27 11 929 5300.
Barloworld, tel +27 11 445 1000 or fax +27 11 444 3643.