B2Gold's Planned Job Reductions in Namibia: Navigating the End of Open Pit Mining
B2Gold Corp is implementing significant workforce reductions at its Otjikoto gold mine in Namibia, with plans to cut 300 jobs during 2025. This strategic downsizing will reduce the company's permanent workforce from approximately 700 to 400 employees as the mine transitions from open pit operations to more limited underground mining insights.
The phased reduction has already begun, with 130 employees laid off in the first quarter of 2024, marking the beginning of a carefully planned downscaling process that will continue throughout 2025.
Why Is B2Gold Cutting Jobs in Namibia?
The primary driver behind these B2Gold job cuts in Namibia is the natural depletion of economically viable open pit reserves at the Otjikoto mine. After a decade of successful operations, the open pit mining activities that have been the backbone of B2Gold's Namibian operations are expected to cease entirely by the end of 2025.
"The mine plan has always anticipated this transition," explained Clive Johnson, B2Gold's President and CEO during a recent investor call. "While open pit mining comes to its natural conclusion, we're shifting to a combination of underground operations and processing existing stockpiles, which requires fewer personnel but maintains production at economically viable levels."
This transition represents a typical mining lifecycle event, where operations evolve from high-volume open pit extraction to more focused underground mining that targets higher-grade deposits with a smaller workforce.
Otjikoto's Significant Contribution to B2Gold's Portfolio
The Otjikoto mine has been a cornerstone of B2Gold's global production profile since beginning commercial production in March 2015. The mine achieved record production of 198,142 ounces of gold in 2024, representing nearly 25% of B2Gold's total global output.
This exceptional performance has been supported by:
- Consistently high-grade ore averaging 1.77 g/t gold
- State-of-the-art mill facilities with 98.4% recovery rates
- Relatively low all-in sustaining costs of $1,080 per ounce
- Record profits driven by gold market trends exceeding $2,300 per ounce
For 2025, production is expected to decrease slightly to between 165,000-185,000 ounces as the transition away from open pit mining progresses. This gradual reduction aligns with the company's transparent communication with stakeholders about the mine's evolution.
The Future Timeline of Otjikoto Operations
While open pit operations are ending, B2Gold has developed a multi-phase plan for continued operations:
-
Underground mining operations will continue until approximately 2027, focusing on the Wolfshag and Otjikoto underground deposits where grades average 2.8 g/t gold, significantly higher than the open pit's 1.77 g/t.
-
Stockpile processing is expected to continue until at least 2032, providing a steady, though declining, production profile over the coming years.
-
Ongoing exploration in the greater Otjikoto land package could potentially extend the mine's life further, with $8.5 million allocated for exploration in 2025.
According to mineral resource geologist Dr. Sarah Kimani, "The Damara Belt where Otjikoto is located has significant potential for additional gold discoveries. The underground extensions, particularly at Wolfshag, have consistently delivered higher grades than initially modeled, which could support extended underground operations beyond current projections."
B2Gold's Global Mining Portfolio
The Otjikoto mine represents just one asset in B2Gold's diversified global portfolio, which helps the company weather the natural production cycles at individual mines.
Current Producing Assets
B2Gold maintains several key operational assets:
- Fekola mine in Mali: The company's flagship operation producing over 580,000 ounces annually
- Masbate mine in the Philippines: Contributing approximately 200,000 ounces per year
- Goose project in Nunavut, Canada: Currently under development with first gold expected in 2026
These diverse operations across three continents provide B2Gold with operational stability and significant production capacity even as Otjikoto transitions to a smaller operation.
Exploration and Development Pipeline
B2Gold continues to invest in future growth through:
- The Anaconda area in Mali, adjacent to Fekola, which shows promising exploration results
- Early-stage exploration programs in Colombia focusing on the Gramalote project
- Finnish exploration activities targeting Eurasian gold deposits
- Continued near-mine exploration at Otjikoto to potentially extend underground operations
Mining analyst Jerome Baker notes, "B2Gold's mining investment insights focus on high-grade deposits that can be developed with relatively low capital intensity. This approach has served them well in extending mine life at other operations and could yield similar results at Otjikoto."
Economic Impact on Namibia's Mining Sector
The reduction of 430 mining jobs between 2024-2025 will have measurable effects on Namibia's mining sector trends, which accounts for approximately 10% of the country's GDP and 50% of its export earnings.
Local and National Economic Considerations
The transition at Otjikoto will likely impact:
- Local communities: Particularly the town of Otjiwarongo, where many employees reside
- Supply chain businesses: Local contractors and service providers will see reduced demand
- National mining statistics: Gold production will decline as a percentage of Namibia's mineral output
- Tax revenue: Though partially offset by high gold prices, reduced production will affect tax contributions
Minister of Mines and Energy Tom Alweendo recently stated, "While we recognize the natural lifecycle of mining operations, the government is working closely with B2Gold to minimize negative impacts on affected communities and identify alternative economic opportunities."
Future Prospects for Namibian Gold Mining
Despite the downscaling at Otjikoto, several factors provide optimism for the future:
-
Ongoing stockpile processing will maintain some level of operations for at least seven more years.
-
Continued exploration could identify new deposits within B2Gold's 6,700 km² exploration license areas.
-
Underground potential at Wolfshag shows promising high-grade intercepts that could extend operations.
-
Skills transfer initiatives launched by B2Gold aim to prepare affected workers for opportunities in Namibia's broader mining sector.
"The geological setting around Otjikoto shares characteristics with productive gold belts in Ghana and Mali," explains Dr. Kimani. "The lower-cost exploration environment in Namibia, combined with excellent infrastructure and a stable mining code, means even smaller deposits can be economically viable, potentially leading to new discoveries."
According to recent reports, while challenging, these B2Gold job cuts in Namibia were anticipated in the company's long-term planning.
FAQs About B2Gold's Namibian Operations
When did the Otjikoto mine begin commercial production?
The Otjikoto mine began commercial production in March 2015 and has been operating for approximately 10 years, consistently meeting or exceeding production guidance during this period.
How much gold did Otjikoto produce in 2024?
Otjikoto achieved record production of 198,142 ounces of gold in 2024, benefiting from higher-than-expected grades in the final phases of open pit mining and excellent mill performance.
How long will operations continue at Otjikoto?
While open pit mining will cease in 2025, underground operations are expected to continue until 2027, with stockpile processing continuing until at least 2032, providing a 7+ year additional production tail.
What is the current workforce at the Otjikoto mine?
As of early 2025, the mine employs approximately 700 permanent workers, which will be reduced to 400 by the end of 2025 as part of the planned transition to underground-only and stockpile processing operations.
Is there potential for future expansion at Otjikoto?
Yes, ongoing exploration could potentially uncover additional mineral deposits that might extend the life of underground operations beyond 2027. B2Gold has allocated $8.5 million for exploration efforts in 2025, focusing on near-mine targets and regional prospects.
The Broader Context of Mining Transitions
The changes at Otjikoto reflect standard industry evolution as mines progress through their lifecycle. The transition from open pit to underground mining and stockpile processing represents responsible mine management rather than premature closure.
Industry expert Jonathan Rivera explains, "What we're seeing at Otjikoto is actually a success story in mine planning. The company is executing a well-telegraphed transition that extends the economic benefits of the original discovery while managing workforce reductions in a phased, transparent manner."
B2Gold continues to invest in technical training for Namibian nationals, with 96% of the workforce being Namibian citizens. The skills developed at Otjikoto remain valuable across Namibia's broader mining sector, which includes uranium, diamonds, zinc, and copper operations.
As B2Gold's official statements confirm, thorough feasibility study insights have guided this transition plan for years. The economic contribution from Otjikoto's remaining operations will continue to be meaningful for years to come, even with reduced production volumes. The company's commitment to environmental rehabilitation and post-mining land use planning further demonstrates its approach to responsible mining throughout the full asset lifecycle.
Want to Identify the Next Major Mineral Discovery?
Stay ahead of the market with Discovery Alert's proprietary Discovery IQ model that instantly identifies significant ASX mineral discoveries as they're announced, providing actionable insights for both short-term trading and long-term investment opportunities. Explore why major mineral discoveries can lead to exceptional returns by visiting the dedicated discoveries page and begin your 30-day free trial today.
