Q&A with De Beers’ Mpumi Zikalala

In February, De Beers announced it was consolidating its assets in South Africa and Canada into one entity called De Beers Group Managed Operations.

At the same time, Nompumelelo (Mpumi) Zikalala was appointed managing director for the group, based in Johannesburg. Ziklala has more than 18 years’ experience in the mining industry, starting out as an ore processing engineer at the Cullinan mine, and most recently as deputy CEO of De Beers Consolidated Mines, responsible for De Beers Group South Africa’s strategy.

Zikalala responded to emailed questions in early June. What follows is a transcript (edited for length) of the questions and responses.

Diamonds in Canada: Congratulations on your new role! What are your biggest challenges you see ahead of you in terms of both the Canadian and South African operations you are responsible for?

Mpumi Zikalala: I do not see this transition as a challenge, but as an opportunity to streamline our operational management and leverage on synergies to provide a more sustainable business model in Canada and South Africa – producer countries that are important to us and where we will continue to invest in growing our business.

The recent closure of the Voorspoed mine in South Africa in December, Snap Lake in the Northwest Territories in 2015, and the end of operations on May 26 at Victor in northern Ontario have also created an opportunity for this review. We need to position our new structure to be ready for growth, and to take on exciting projects like Chidliak in Canada and Venetia Underground in South Africa.

Of course, there will be the usual teething pains that all new structures go through, such as the 8-9 hour time zone difference between South Africa and Canada, depending on the time of year. However, with the right culture and a ‘one-team’ attitude, I believe we will overcome these quickly.

Another significant change is the reorganization of the De Beers Group Technical and Sustainability (T&S) function, which will take accountability for new mining projects, including the Chidliak project, as well as our mine closure portfolio. By consolidating responsibility for mining and closure projects, we will accelerate the deployment of new technology and innovation.

DiC: Can you speak to some of the plant enhancements that have been made at Gahcho Kué and how well the mine is performing?

MZ: Gahcho Kué, together with our JV partner Mountain Province, is now entering its third year of operations with incredible mining and production performances, some of which are challenging for best in the entire company portfolio.

During the first two winters, we worked on improving the external conveyors that were exposed to harsh Arctic conditions. This project was very successful and has provided us with reduced down time for maintenance. We also had to get accustomed to the orebodies and adapt to the different kimberlite characteristics following the addition of the Hearne pit into our mine plan last year. The teams have done an excellent job fine-tuning everything from the feed strategy to planned maintenance programs. This performance has recently resulted in an increased throughput for the plant, which should see 3.2 to 3.3 million tonnes of treated ore in 2019, and total production of 6.6 to 6.9 million carats this year.

We are also very excited about the current resource extension work that is ongoing in very close proximity to the three pits that make up the mine plan. The drilling program has been hitting new kimberlite and we believe this has the potential to add to the mine life.

Gahcho Kué is also building a tremendous safety culture. In fact, on June 1st, the Gahcho Kué Mine Rescue Team secured their third consecutive Top Overall Surface Team title at the 62nd Northwest Territories/Nunavut Mine Rescue Competition, which has earned them a spot in September’s Western National Mine Rescue Competition in Fernie, B.C.

DiC: We have reported in the past on the innovative approach De Beers intends to take in developing the Chidliak project in Nunavut. What news can we expect to see out of Chidliak this year and next?

MZ: The Chidliak project has the potential to become our next mine in Canada with an inferred resource of more than 22 million carats. The project team is currently working through a bold concept study, based on the Anglo American ‘FutureSmart Mining’ model.

Like our other sites in Canada, Chidliak is in an Arctic setting, currently only accessible by air. The goal is to run this mine on 100% renewable energy, if possible, with the latest technologies and a small environmental footprint. We are also investigating different mining techniques, expanded use of digital technology in all aspects of the mine, as well as different approach to logistics and supply chain to service the site in non-traditional ways.

The property has dozens of smaller kimberlites, so the team is looking to develop a small, modular operation that is easy to lift and shift from pipe to pipe. If we can move this from concept to reality, it will not only significantly change our approach to mining, but the industry.

We have an aggressive timeline for the project team, who hope to deliver their project proposal early in 2020. A lot of work is currently under way to support the concept study, which includes a summer drill program on the CH-6 kimberlite and additional environmental baseline studies to build on the work carried out over the last 10 years.

What I like most about the Chidliak project is that it signals our commitment to continue to grow De Beers Group in Canada for years to come. I know that means a lot to our employees, the various levels of government and the communities who we look to build partnerships with to maximize the opportunities for everyone involved.

– This article originally appeared in the June 2019 issue of Diamonds in Canada magazine.