De Beers Starts Construction of $2bn Venetia Underground Project

The De Beers Group of Companies has begun construction of a new underground mine beneath its open-pit Venetia Mine in Limpopo Province, South Africa. The US$2 billion (R20 billion) investment will extend the life of Venetia beyond 2040 and replace the open pit as South Africa's largest diamond mine.

According to De Beers, with underground production expected to commence in 2021, over its life, the mine will treat approximately 130 million tonnes of ore, containing an estimated 96 million carats. The mine will also support over 8,000 jobs directly and a further 5,000 through the supply chain.

A ceremony was held at the Venetia Mine on Tuesday, during which South African President Jacob Zuma was a guest of honor and symbolically turned the first earth. Also present were, among others, Susan Shabangu, Minister of Mineral Resources; Sir John Parker, Chairman of Anglo American plc; Mark Cutifani, Chief Executive of Anglo American plc and Chairman of the De Beers Group; Philippe Mellier, CEO of the De Beers Group; Barend Petersen, Chairman of De Beers Consolidated Mines (DBCM); Manne Dipico, Chairman of DBCM empowerment shareholder Ponahalo Holdings; and Phillip Barton, CEO of DBCM.

Praising the investment by De Beers to extend the life of the mine into the 2040s, His Excellency President Zuma, said: "This 20 billion Rand investment in the diamond industry, the biggest single investment in the diamond industry in decades, signals that indeed our mining sector is poised for growth, and that it has a bright future."

South Africa's Minister of Mineral Resources, Susan Shabangu, added that "the launch of this underground mine shows that South Africa remains an investment destination of choice and, through our mining laws, we will continue to ensure that this investment sustainably benefits mining communities and labour-sending areas."

According to Mark Cutifani, Chief Executive of Anglo American plc and Chairman of the De Beers Group, "Over the last 14 years alone, Anglo American has invested nearly 200 billion Rand in South Africa, emphasising our commitment and making a real difference for South Africa and all South Africans."

Concluded Philippe Mellier, CEO of The De Beers Group: "With production set to continue into the 2040s, Venetia will support South Africa's mining economy for generations to come, and make diamond moments possible for millions of people around the world."

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