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Debswana beats 2006 output target
David McKay
Posted: Fri, 10 Nov 2006

[miningmx.com] -- DEBSWANA will produce about 33 million carats in 2006, exceeding its 31 million carat target, Debswana MD Blackie Marole said on Friday.

The improvement in production was owing to productivity gains, a plan unrolled by the company this year as part of a five-year strategy.

“We have a five-year time horizon where we hope to optimise the resources that we have now,” said Marole.
33m carats a year is sustainable
“I believe 33 million carats a year is sustainable. It’s due to tremendous improvements in efficiency,” he said in an interview.

Debswana produced 31.9 million carats in 2005, equal to 27% of world output, and two thirds of De Beers’ output.

Debswana is a joint venture between De Beers and the government of Botswana.

Marole said the company had begun a programme to consider underground mining at Orapa, Debswana’s founding mine. It produces about 17 million carats a year.

Plant refits were also being considered across the board, he said.

There were no estimates yet on the capital cost of the underground mine or to refit the plants.

“We are doing resource assessments at those mines, Orapa and Jwaneng,” said Marole.
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“At the end of next year, the results will be fed into a feasibility study.”

Commenting on cost containment targets, Marole said Debswana was aiming for three percent below inflation. The national inflation rate in Botswana in September was 10.5%.

De Beers is 45% owned by Anglo American.