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Venetia adapts to survive and soar
To adapt to challenging market circumstances, leading diamond producer, De Beers Group, has taken substantial steps to optimise its operations, notably by adjusting the development sequence of its flagship diamond mine, Venetia, which is transitioning from open pit to underground mining.
“C hallenging times require that we step up and work differently,” Venetia mine’s Senior General Manager, Ntokozo Ngema, tells a media delegation on a recent site visit. “Having reworked the business plan, we now have a clear pathway forward. Importantly, we have turned the corner at Venetia mine.” The Venetia Mine, located in Limpopo, has been the country’s largest producer of diamonds since 1995. Opened in 1992, the Venetia open pit mine was in operation until December 2022, when the open pit ceased to operate and the mine transitioned to underground in 2023. The $2.3 billion investment in the Venetia Underground Project, is one of the largest investments in South Africa's diamond mining industry in decades. According to De Beers, 2024 continued to be an extremely challenging year for natural diamonds. “Just as the supply chain had stocked up heavily following record years of demand in 2021 and 2022, the industry was faced with a deteriorating global economy and declining engagement rates in the post- Covid lull.” However, the diamond specialist remains upbeat about the future of diamonds. “We are confident that we will move through this cycle and that industry conditions will improve. Nonetheless, we’re not relying solely on the cycle. We’ve already taken actions to build financial resilience as we continue to navigate the prolonged period of lower demand through our cost management and streamlining initiatives. Furthermore, we have reviewed our strategic focus and are confident we have the right strategy in place to capture future opportunities,
maximise the efficiency of our business and create enhanced value as we move through this stage of the cycle. As it stands, we have the best assets in the diamond industry, with long lives, strong expansion potential and enviable positions on the cost curve – all vital, as the outlook for global supply is in for a gradual decline in the years ahead.” Venetia mine Initially targeting 6 mtpa of kimberlite ore by 2027, the downturn in the market and stiff competition from lab-grown diamonds, saw the diamond miner revisit its original underground mining strategy. While the ramp-up to 6 mtpa of kimberlite ore to produce nameplate capacity of roughly 4 to 4.5 million carats, remains firmly on the table, the revised ramp-up is scheduled for 2032, which extends the life of mine by a further three years to 2049 from 2046”, Ngema said. According to Jan Nel, General Manager: Project and Underground, in response to the economic downturn, the company conducted a comprehensive operational review, focusing on optimising working costs, capital expenditures, and production sequencing. This included developing various business plans designed to safeguard the company’s future value. The plans involved determining the optimal workforce size, necessary power and infrastructure for the underground operation, and future production levels alongside their corresponding capital requirements. “The existing plant will stand us in good stead for another 20 years and adequately support 6 mtpa capacity,” explained Nel. According to De Beers, its updated Venetia turnaround
24 MODERN MINING www.modernminingmagazine.co.za | DECEMBER 2025 - JANUARY 2026
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