Name of the Project
Venetia Underground Project (VUP).

Location
Venetia mine, in Limpopo, South Africa.

Project Owner/s
Anglo American subsidiary De Beers Consolidated Mines.

Project Description
Venetia is currently the biggest diamond mine development under way anywhere in the world.

Venetia ceased openpit operations in December 2022 after 30 years of openpit production.

The VUP will extend the mine life to 2046 and yield about 81-million carats from about 115-million tonnes of material.

The project comprises the K01 and K02 orebodies. Both kimberlites extend below surface, enabling De Beers to mine to depths of up to 1 000 m. There are indications that K01 extends below 1 000 m, and De Beers may explore options to extend the underground operation’s life beyond 2046.

K01 – a sizeable orebody measuring 550 m x 120 m – will be the source of the majority of production, generating an average of 3.5-million carats from about 4.5-million tonnes a year of material.

The K02 orebody – measuring 200 m x 300 m – will provide the balance, producing about one-million carats from 1.5-million tonnes to 2.5-million tonnes a year of material.

The current mining solution for the underground project will use sublevel caving to extract material from both orebodies. Further optimisation studies are being completed to determine whether the K02 orebody should be mined using a block cave mining methodology.

Underground infrastructure comprises two vertical shaft systems for personnel transport, ore transport and the routing of services, as well as lateral access to levels on the 54L , 91L and 94L stations for the services shaft, and on the 100L station for the production shaft.

The service shaft has a completed internal diameter of 7 m and will eventually provide all the services and people transport for the underground workings, while the production shaft, with the same internal diameter, will be fitted with two rock winders, each having two 24 t payload skips.

The service and production shafts will serve as downcast air intakes to the underground workings, while a decline and pit ramp will assist with early underground access for the construction of the production infrastructure for K01 and K02, which will be developed concurrently to the vertical shafts. They will also serve as additional air intakes and logistical access points, which VUP says will mitigate the immediate requirement for the use of the shafts for ground handling.

Overall, VUP will undertake 61.5 km of initial excavations as part of the expansion project, as well as a further 177 km of excavations over the remainder of the underground life-of-mine.

Surface infrastructure, which includes change houses, a heat-tolerance testing centre, a lamp room, a proto room, a control room, winder houses, workshops, warehouses, ventilation systems and a state-of-the-art training facility, were completed in early 2021.

De Beers also plans to have Venetia operating as carbon neutral by 2030. Using battery electric vehicles and installing a 60 MW solar PV plant are expected to help achieve that goal.

The ultimate sizing of the energy plant is yet to be finalised.

Potential Job Creation
The project currently employs 4 300 people, with the majority of employees living in the surrounding Musina and Blouberg communities. The VUP will not only continue to be a key employer in the area but is also focused on the transfer of key skills to local employees. This will ensure a sustainable world-class mechanised mining operation, enabled through the local training centre facilities that were completed in 2021.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
De Beers’ $2.3-billion investment in the VUP represents the biggest single investment in South Africa’s diamond industry in decades.

Planned Start/End Date
First production from VUP was achieved in June 2023. The project is expected to reach its nameplate capacity in 2026.

Latest Developments
In response to prevailing market challenges, the project is undergoing a rescoping process to optimise capital deployment and production schedules. De Beers' production guidance for 2025 has been revised to between 20-million and 23-million carats (100% basis), reflecting continued weakness in rough-diamond trading conditions.

In South Africa, production rose by 8% to 2.2-million carats, supported by the continued ramp-up of the Venetia underground operation and a slight improvement in ore grade.

Despite this increase, output remains below historical levels achieved during openpit operations, as most of the ore currently processed is drawn from existing surface stockpiles. Output is expected to rise in the coming years as underground mining activity intensifies.

According to Anglo American, De Beers is closely monitoring conditions in the rough-diamond market and will adjust output in line with demand. Production is expected to increase gradually, reaching between 28-million and 31-million carats (100% basis) by 2027, in line with an anticipated market recovery.

The electrification of the Venetia mine – an essential part of its transition to underground operations – is progressing well. However, meaningful reductions in the mine’s carbon footprint will be realised only once Envusa Energy’s renewable-energy projects are operational. Envusa Energy, a joint venture between Anglo American and EDF Renewables, aims to establish a regional renewable-energy ecosystem in South Africa to meet the group’s long-term power requirements.

Key Contracts, Suppliers and Consultants
Murray & Roberts Cementation (development of underground mine); Worley (engineering, procurement and construction management); SRK Consulting (geology and geotechnics); AECI Mining Explosives (explosives); SMEI Projects (recovery front-end optimisation – supplied and installed structural steel, mechanical equipment, platework, and piping); Sandvik (automated mining equipment and systems); Rajant Corporation (network nodes, or BreadCrumbs); Redpath Australia (development of the underground mine with the De Beers team, working as the integrated owners team); Atlas Copco (drill rigs); Zutari, formerly Aurecon (environmental assessment); Howden (underground ventilation); Boston Dynamics (Spot robot – assess ground conditions after blasting); SLR and Envusa Energy (solar PV facility); BMH Africa (construction of key facilities to enhance operational efficiency and safety); BBE Projects (air-cooling system), ABB (hoists); and Louwill Lefa (design and supply – water doors, conveyors and underground workshop – supply and construct).

Contact Details for Project Information
De Beers Group Managed Operations senior communications manager Jackie Mapiloko, tel +27 11 374 7173 or email jackie.mapiloko@debeersgroup.com.