JOHANNESBURG (miningweekly.com) -– Aim-listed diamond producer Kopane Diamond Developments would place its Satellite plant at the Liqhobong project, in Lesotho, on care-and-maintenance with immediate effect.

This was as a result of the current economic and market turbulence, which had caused diamond prices to decline by between 30% and 50% in the past two months, it said on Monday.

Kopane noted that it was not clear when prices would return to higher levels, but that it was now "inappropriate" to continue production at a small scale while incurring a material cash loss.

The suspension of mining operations at Liqhobong will conserve cash and prevent the unnecessary and unprofitable depletion of our diamond resources. It is our opinion that rough diamond prices will recover in the longer term once consumer confidence is restored," said Kopane executive chairperson Tim Read.

Read noted that the company would focus on advancing the appraisal and development of the Liqhobong Main Pipe project to take full advantage of a recovery in diamond prices in future.

Kopane said its partner, the Government of Lesotho, which held a 25% stake in the project, supported this decision.

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