Jwaneng Diamond Mine Image credit: Debswana Mining Company
Debswana Mining Company, which is owned by De Beers and the Botswana government, has cancelled $1.3 billion contract with a unit of Australia's Thiess to extend the lifespan of its Jwaneng diamond mine, according to news reports.
Reuters reports that Debswana will now conduct the extension project, known as Cut 9, in-house.
No reasons for the termination of the contract were given.
"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, was quoted as saying.
The nine-year Cut 9 project is expected to extend the life of Jwaneng to 2035, producing about 53 million carats of rough diamonds.
Majwe Mining, which is 70%-owned by Thiess, was awarded the contract in 2019.
Debswana's operations were affected by the impact of the COVID-19 pandemic as its production dropped 29% to 12.3 million carats in the first nine months of 2020.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
