South Africa-based junior miner Limoz Resources announced last week that it would be reopening the old Akwatia diamond mine in Ghana mid-year.

Limoz has partnered with Great Consolidated Diamond Ghana Limited (GCDGL) to resume operations, and the partnership has already engaged with contract buyers that are willing to enter into a long-term agreement for the reopening of the mine. This will allow the start of production, which the partnership hopes will eventually ramp up to two-million carats a year, using a 500-t-per-hour processing plant.

More than 100-million carats of diamonds were mined from Akwatia since the inception of commercial operations in 1924. Diamond production peaked between 1964 and 1974, when about 2.4-million carats a year were produced from the 1.2-million cubic metres of processed gravel.

In 1991, production steadily declined to less than 125 000 ct a year owing to both depletion of the valley and terrace reserves in the Akwatia block, and to the lack of replacement of capital investment. This saw the mine ceasing to operate in 2007.

In order to revive this operation, GCDGL already has in place a memorandum of understanding with Modular Process Technologies, which will supply fleet and plant for the operation. The company will also provide technical support and spares for the operations.

Limoz has two other projects in the region, which makes it easy for the company and appointed contractors to have one central office where critical spare parts can be kept and from where administration can be done.

With the operation also envisioning the provision of potential employment for Ghanaian citizens, the government has a 10% stake in the operation, while Limoz will invest an undisclosed amount into the operation as well.

“The net effect of our operational strategy will support the government’s policy of poverty alleviation and improvement in the living standards of the people in the region, especially those within the communities in and outside the concession,” says Limoz CEO Lebogang Fredric Makololo.

Limoz is also raising $10-million to acquire two diamond projects currently under care and maintenance in Guinea from diamond mining company Stellar Diamonds.