Canadian gold miner B2Gold which announced its phased closure of Otjikoto open-pit mine in Namibia because of depleted gold resource last year has stepped up its mine closure rehabilitation with closure liability (also including Fekola Mine, Masbate Gold Project) now estimated to cost N$2.3 billion.
The mine, which began commercial production in March 2015 reportedly sold gold worth over N$25 billion for the past nine years.
Business Express understands that an integrated mine closure framework was developed in 2021 to guide the progression of Otjikoto’s closure planning and to align conservation and community investment activities accordingly.
“In 2023, a comprehensive Mine Closure Plan incorporating environmental, social, human resources, and financial aspects was developed and implemented. Throughout 2023, rehabilitation efforts continued as planned, with emphasis on waste rock facilities and other exposed areas. This progressive rehabilitation approach ensures the appropriate mitigation of closure risks at the time of closure. Further technical assessments for pit lake development and post-closure surface water management have been undertaken, which highlight that there no predicted long-term water quality issues for the project,” the gold miner said in its latest responsible mining report.
As part of social closure planning, B2Gold Namibia, in partnership with civil society, has established a three-year social investment transition strategy that aims to ensure a smooth handover process of social projects and funding during the mine closure phase.
“Reclamation and closure of a mine site, along with helping employees and communities to manage the transition from mining to post-mining economic activities, is a multifaceted process with complex risks. B2Gold applies an integrated and multidisciplinary approach to mine closure and transition, with an awareness of the need to plan for the social and environmental changes that may occur while also ensuring the safety of communities. Our goal is to exercise integrated mine lifecycle planning, to reduce closure risks and liabilities, and to create value for the business and our stakeholders,” further notes the miner.
In the report, B2Gold also notes that they have updated the estimate of the environmental closure liability at each of their and in 2023, consolidated estimated environmental closure liability for the Fekola Mine, Masbate Gold Project and Otjikoto Mine was approximately N$2.3 billion on an undiscounted basis.
In addition, the company says, many jurisdictions require mining companies to post financial security for all or part of the remaining costs associated with mine reclamation and long-term protection of the environment.
“This is a precautionary measure to ensure that governments will not have to unreasonably contribute to the costs of reclamation of a mine site if a company is unable to meet its reclamation and closure obligations. Currently, there are such requirements in Mali (relating to our Fekola operation) and the Philippines (relating to the Masbate
Gold Project).
“In Mali, we have reached an agreement with the government to fund an escrow account based on a production basis (i.e., per tonne of material processed). Under the terms of the agreement, the funds will be released from escrow from time to time for Fekola Mine rehabilitation and closure purposes, in accordance with the Fekola mining convention and the mine closure plan. B2Gold, through our operating companies, currently posts all financial securities as required by these jurisdictions,” the miner says.
Last year, B2Gold said that there is intensive agriculture in closure plans to provide food security highlighting that Farm Erhardtshof, one of the private commercial farms purchased to develop the mine, has been cultivating intensive agricultural production, with support from an agricultural specialist and Namib Mills, the largest grain processing company in Namibia and a large employer in the neighbouring town of Otavi. The first harvest in 2021 produced 12.87 tons of maize per hectare and 220 bales of Katambora Rhodes grass. Katambora Rhodes grass tolerates warm temperatures and saline soils and is a popular animal feed.
“The eventual aim is to establish 90 ha of land under pivot irrigation – a method of crop irrigation in which equipment rotates around a pivot and crops are watered with sprinklers. With this method Farm Erhardtshof can produce 1,000 tons of maize and 700 tons of wheat annually and make a significant contribution to Namibian food security. Successful approaches can be shared with the surrounding communities and Farm Erhardtshof’s agricultural production can be integrated into post-closure plans for the site,” said the miner.