28 Feb 2018 14:40pm
WINDHOEK, 28 FEB (NAMPA) The Expression of Interest process in relation to the proposed sale of Elizabeth Bay Mine has commenced, Namdeb Holdings has announced.
The company, in a media statement issued on Wednesday, stated that Standard Bank Namibia has been appointed as its financial advisor on the proposed sale process for Elizabeth Bay Mine and selected associated marine licences in this regard.
Namdeb Holdings, a 50/50 joint venture between Government and the De Beers Group, announced on 09 February 2018 that it is seeking a buyer for Elizabeth Bay Mine and the associated mining licence areas.
The Elizabeth Bay mine, which was commissioned in 1991, and is located along the south- western coast of Namibia near Lüderitz, has significant potential in the mining licence areas associated with onshore and marine operations.
According to the statement, the onshore mining operation in 2017 produced approximately 200 000 carats.
Elizabeth Bay Mine has over the years contributed significantly to the economy of Lüderitz, particularly in providing high quality job opportunities for the community.
Following a recent review, it was concluded that the best way to secure a longer future for the mine, beyond the current projected 2019 life, is to find a more suitable operator that could potentially prolong the mine to continue beyond 2019, the statement said.
It said the potential successful operator would also have the opportunity to further explore the marine potential associated with the Elizabeth Bay licence areas.
Following the 2009 economic downturn, the mine was put on care and maintenance.
In 2011, operations were restarted through the implementation of the Elizabeth Bay optimisation project, which at the time projected a four-year life of mine to 2014.
However, continuous innovation ensured that the mine has continued to operate well beyond this time, with a current life of mine extending to 2019.