B2Gold Corp (TSE: BTO) (NYSE: BTG) intends on cutting 300 jobs in its Namibia projects this year as it scales down its operations at the Otjikoto mine after depletion of its open pit reserves.
John Roos, Namibia’s country manager, said on Monday that it intended on reducing its permanent head count from 700 to 400 employees.
The Otjikoto mine posted a record profit, driven by record high gold prices. Open pit mining will end this year due to the depletion of gold ore, but the company plans to process stockpiles through at least 2032. Current underground operations are set to continue until 2027, with the potential for an extension if ongoing exploration uncovers additional mineral deposits.
Furthermore, the Otjikoto mine began commercial production in March 2015 and produced a record 198,142 ounces of gold last year, contributing nearly a quarter of B2Gold’s total output.
B2Gold began phasing down its operations in Namibia in the first quarter of 2024. The company laid off 130 employees during the year. It expects the Otjikoto mine to produce between 165,000 and 185,000 ounces of gold in 2025. B2Gold also operates gold mines in Mali and the Philippines.
It is developing the Goose project in northern Canada. The company is also advancing other development and exploration projects in Mali, Colombia, Finland, and several other countries.
B2Gold maintains a cooperative relationship with the Namibian government, contributing 61 per cent of its 2024 pre-tax profit in taxes and royalties as the Otjikoto mine nears closure. The company has subsequently engaged with President-elect Netumbo Nandi-Ndaitwah to discuss ongoing operations and community initiatives.
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B2Gold has endured considerable challenges
B2Gold was founded in 2007 by former executives of Bema Gold, following its acquisition by Kinross Gold Corporation (TSE: K) (NYSE: KGC). The company quickly acquired several exploration projects in Colombia and Nicaragua.
It poured its first gold in 2009 and began expanding through acquisitions and mine development. B2Gold acquired CGA Mining in 2013, adding the Masbate Mine in the Philippines. It also acquired Auryx Gold, gaining the Otjikoto project in Namibia. In 2019, it sold its Nicaraguan assets to Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA).
B2Gold operates mines in Mali, Namibia, and the Philippines, with development and exploration projects across several countries.
B2Gold has also faced challenges at its Fekola Mine in Mali, where a seven-day workers’ strike in late 2024 disrupted operations. The strike reduced mining capacity to 25 per cent after the company dismissed employees linked to prior illegal activities.
Despite the disruption, B2Gold maintained full mill throughput and expects to hit the lower end of its 2024 production guidance. The company also paid a one-time $30 million tax after a sector audit. This payment aligns with Mali’s updated mining code, which increases the state’s share of mining revenues.
In the Philippines, B2Gold reported strong results at the Masbate Mine in 2024. The mine produced 194,046 ounces of gold, meeting the upper end of its guidance. Masbate achieved record mill throughput and maintained steady gold recovery rates. The company did not report any major operational issues during the year.
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