More gold, less jobs
B2Gold Namibia declares N$2.59 billion profit for 2024
Otjikoto mine sheds jobs but boosts production, goes underground but develops surroundings
At the Erhardtshof agriculture project, harvesting of the 2024/2025 crop began early in June.“Yes, we mine gold, but thinking towards the future is most important: Solving food insecurity in Namibia," said John Roos, B2Gold Namibia's country manager.
In May, the company announced the completion of the Ombili Clinic and the Otavi Water Project, which includes the construction of a tower and a water distribution system for the area surrounding its Otjikoto gold mine.
The Canadian senior gold mining company B2Gold announced production results from the mine for the 2024 financial year in April, and the numbers were most impressive. Out of gold revenue of N$8.889 billion, the mine - 90% owned by B2Gold and 10% by local partner EVI Mining Company Limited - earned N$2.599 billion in profit after tax. Gold production for the year stood at 198 142 ounces, while gold sales amounted to 203,796 ounces.
More good news for Namibia is that, over the course of last year, about two-thirds, or N$1.966 billion, of total procurement spend was done locally, while N$1.138 billion was spent offshore, bringing total procurement to N$3.104 billion. The company also invested N$31.242 million in community upliftment projects and contributed N$2.512 billion to government coffers through corporate taxes amounting to N$1.874 billion, royalty tax of N$255.4 million, and export levies of N$85.3 million.
At the announcement of the results in the capital, Roos highlighted that from the return to shareholders, amounting to N$2.85 billion, 5% tax is paid on the dividends declared to their 90% shareholder overseas.
For the full year 2025, the mine is targeting production of 175 000 ounces of gold and, “you can see that from where the current gold prices are sitting at the moment, that means significant profits and significant contributions to the Namibian economy,” Roos said at the time.
Downsizing
Unfortunately, with the continuing transition from open-pit to underground mining, the mine requires fewer workers and is continuing, at pace, with its plan to shed jobs. Already last year, the mine employed around 671 workers, down from just under 900 in 2023. By the end of this year, Roos said, B2Gold intends to stabilise its workforce at approximately 400 employees.
This workforce downsizing comes as open-pit mining operations are scheduled to conclude in the third quarter of 2025, while underground mining of Otjikoto’s Wolfshag deposit is expected to continue into 2027. Exploration results indicate potential to extend underground production from Wolfshag beyond 2027, supplementing processing operations into 2032, when economically viable stockpiles are forecast to be exhausted.
However, Otjikoto also holds promise in its Antelope deposit, for which a positive Preliminary Economic Assessment (PEA) was announced in February this year.
The deposit comprises the Springbok Zone, the Oryx Zone and a possible third structure, Impala - some 4 km southwest of the existing Otjikoto pit. B2Gold believes the Antelope deposit has the potential to become a small-scale, low-cost underground gold mine that can supplement low-grade stockpile production from 2028 to 2032, “and result in a meaningful production profile for Otjikoto into the next decade,” the miner said in a news release.
The PEA suggests an initial mine life of five years and a total production of 327 000 ounces, averaging about 65 000 ounces per year. Together with the processing of stockpiles, this could potentially increase production to about 110 000 ounces per year from 2029 through 2032.
An initial budget of up to US$10 million has been approved to de-risk the Antelope deposit this year.
Developments
In June, B2Gold Namibia applied to amend its Otjikoto environmental clearance certificate to allow for the development of a new underground portal, ventilation systems, water reticulation to treat water from below the surface, power reticulation, and new roads connecting a new run-of-mine pad to the processing plant. Antelope will also receive a new waste rock dump, dewatering boreholes, and a batch plant, workshop bay, lamp room, compressor, and new fencing to protect the neighbouring game farm.
Looking ahead to the eventual closure of the mine, B2Gold has already begun laying the groundwork for a remarkable legacy. Not only have over 6,000 seedlings been planted, but more than 150 hectares of the environment have also been rehabilitated. Plans are underway to expand the solar power plant, the maize farms and the tourism-oriented nature reserve into standalone businesses — initiatives that will continue to benefit Namibia long after mining operations have ceased.