Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – ASX-listed Kimberley Diamonds has approved A$14.7-million to recommission the Lerala diamond project, which the previous owner Mantle Diamonds placed on care and maintenance in 2012.
Commissioning of Lerala, which is situated near the Martin’s Drift border post with South Africa, is expected to start in the first half of the 2015 calendar year. At full production, the mine is set to produce 400 000 ct/y of diamonds.
Kimberley Diamonds reported on Monday that it planned to appoint a contract miner for Lerala and that it had engaged consultants to provide lump sum turnkey pricing for the recomissioning of the operation. The company also engaged environmental consultants to analyse and advise on health, safety and environmental aspects of the mine.
“Delays in receiving environmental approvals could impact on the planned commencement of operations,” the company said.
Meanwhile, Kimberley Diamonds announced that it had withdrawn the A$14.3-million funding commitment it had made in February to develop the Ellendale E4 mine, in Australia, which is on care and maintenance.
“The board will revisit the development of E4 in due course. At this time, mining of the E9 pipe is continuing at Ellendale and preliminary work on E4 is also continuing,” the company said in a statement.
Kimberley Diamonds is considering options to extend the life of the E9 operation, focusing on treatment of course tailings. Mining was restarted at the E9 pipe in April this year.