JOHANNESBURG (miningweekly.com) – Aim-listed alluvial diamond mining company Namibian Resources, which mines diamonds on behalf of Namdeb, will place its operations in Namibia on care-and-maintenance, while the outlook for diamond markets remained uncertain.

The cost of the Namibian operations would now be reduced to the minimum required to maintain the plant and equipment, the company said in a statement this week.

In December. Namdeb, a joint venture between the Namibian government and world-number one gem-miner De Beers, imposed a quota on Namibian Resources’ production. However, the world diamond markets had declined further since then, with large reductions in quantities of both rough and polished diamonds sold, and substantial declines in open-market diamond prices.

The company said that its directors would continue to monitor the situation, and would seek other projects which could be brought into the company.

Namibian Resources’ Namdeb concession comprised the Sperrgebiet and the Luderitz district of Namibia.

Meanwhile, a sum of £145 000 has been advanced to the company, which would be used to fund its cash needs through to July this year. The advance was unsecured and interest free.

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