Aim- and JSE-listed Diamondcorp said on Friday it had shut down its the Lace processing plant and that full-scale production from tailings retreatment would not resume until the first quarter of 2013.
The company explained that it had shut down the plant in response to the weakening of diamond prices in the July to August period. During the shutdown, the company would undertake plant upgrades.
Diamondcorp said 5 312 ct of diamonds recovered from tailings retreatment prior to shutting down the plant would be held in inventory and that it would be sold when prices recovered. The company postponed the proposed tender for September.
The firm also holds 2 168 ct of diamonds recovered from underground bulk sampling, which would be retained for evaluation by potential off-take partners.
Diamondcorp posted a loss of £1.56-million for the six months to the end of June, compared with a loss of £1.17-million a year earlier.
CEO Paul Loudon said the period under review saw the company make significant steps towards its goal of being a long-term diamond producer. “Having secured the majority of the project finance required for the Lace underground development, we look forward to finalising the balance of the financing and starting underground development as soon as possible."
The company said last week it would receive R220-million in funding for the underground development and purchasing of mining equipment for its Lace mine, outside Kroonstad. It also agreed that the company would arrange another R100-milllion for the mine prior to the initial drawdown of the IDC facility, which would take total project funding to R320-million, representing a 33% contingency on the forecast peak-funding requirement.
Edited by: Mariaan Webb
Aim- and JSE-listed Diamondcorp said on Friday it had shut down its the Lace processing plant and that full-scale production from tailings retreatment would not resume until the first quarter of 2013.
The company explained that it had shut down the plant in response to the weakening of diamond prices in the July to August period. During the shutdown, the company would undertake plant upgrades.
Diamondcorp said 5 312 ct of diamonds recovered from tailings retreatment prior to shutting down the plant would be held in inventory and that it would be sold when prices recovered. The company postponed the proposed tender for September.
The firm also holds 2 168 ct of diamonds recovered from underground bulk sampling, which would be retained for evaluation by potential off-take partners.
Diamondcorp posted a loss of £1.56-million for the six months to the end of June, compared with a loss of £1.17-million a year earlier.
CEO Paul Loudon said the period under review saw the company make significant steps towards its goal of being a long-term diamond producer. “Having secured the majority of the project finance required for the Lace underground development, we look forward to finalising the balance of the financing and starting underground development as soon as possible."
The company said last week it would receive R220-million in funding for the underground development and purchasing of mining equipment for its Lace mine, outside Kroonstad. It also agreed that the company would arrange another R100-milllion for the mine prior to the initial drawdown of the IDC facility, which would take total project funding to R320-million, representing a 33% contingency on the forecast peak-funding requirement.
Edited by: Mariaan Webb
