https://www.engineeringnews.co.za

Kimberley Diamonds closes WA diamond mine

2nd July 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Operations at the Ellendale diamond mine – the home of rare fancy yellow diamonds in Western Australia – have been suspended, and owner Kimberley Diamonds has called in administrators to the subsidiary holding the mining licence.

The company said on Thursday that lower recovered grades and lower size distribution had negatively impacted on the revenues of its Kimberley Diamond Company (KDC) subsidiary. A sharp decline in the rough diamond market also saw the company achieve significantly lower-than-expected prices at a recent auction held in Antwerp.

Kimberley Diamonds noted that despite a number of successful cost-cutting initiatives at KDC, the subsidiary was unable to remain solvent, and the board had resolved to place the subsidiary into external administration.

The voluntary administration would not apply to Kimberley Diamonds or its other subsidiaries, which hold interest in the Lerala diamond mine, in Botswana, and the Lomero-Poyatos project, in Spain.

At the end of June, Kimberley Diamond secured a A$10-million loan from China-based auction house Zhejiang Huitong Auction to recommission the Lerala project.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Industrial Nozzles & Systems (Pty) Ltd
Industrial Nozzles & Systems (Pty) Ltd

Industrial Nozzles & Systems (Pty) Ltd (Est. 2000) exclusive representative in Southern Africa for LECHLER GmbH (Est. 1879) - Europe's leading...

VISIT SHOWROOM 
ATI Systems
ATI Systems

ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.08 1.078s - 140pq - 2rq
Subscribe Now