De Beers receives R4bn from Standard Bank for Venetia underground project

The Standard Bank has provided R4 billion of the R10 billion syndicated debt funding package needed by De Beers to transform the Venetia diamond mine from an open-pit to an underground operation.
Mining Weekly reports that the bank provided a revolving credit facility to help the mine finance the completion of the underground project.
“Our appointment by De Beers gives us the opportunity to leverage our specialist knowledge within the mining industry,” Standard Bank corporate financing solutions manager Kesh Ramlakun was quoted as saying.
The underground project seeks to transition the mine from an open pit to an underground operation, thereby extending the mine life by 23 years to 2046.
Construction of the underground project started in 2013.
Underground production was initially expected to commence in 2021, while the mine was projected to treat about 130 million tonnes of ore, containing close to 96 million carats.
The underground project is targeting its first production by late 2022 and ramp-up to full production from 2024.
At least 5.9-million tonnes of ore will be treated through the existing process plant to produce about 4.5-million carats of diamonds a year.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished