Photo by: Reuters
PERTH (miningweekly.com) – ASX-listed Kimberley Diamonds has inked an offtake agreement for the sale of diamonds from its Lerala mine, in Botswana, between September 2016 and February 2017.
The company said on Thursday that its subsidiary Lerala Diamond Mines had conducted a tender for its diamonds in late September, with the winning bidder entering into an offtake agreement for all diamonds produced at the mine for a six-month period.
Kimberley said prices achieved under the offtake were consistent with the company’s expectations and recent forecasts.
The company noted that the entry into this short-term offtake agreement reflected demand and interest in the market for the Lerala diamonds, and supported the company’s view of the quality of the product, as well as the longer-term viability of the project.
Kimberley Diamonds started production at Lerala in April. The mine will produce an average of 357 000 ct/y at full production and operate for seven years.
The firm acquired the mine through its 2014 acquisition of Mantle Mines.