Botswana Diamonds will list on London’s Alternative Investment Market (AIM) as of January 2011, company chairman John Teeling announced. The listing is part of Lucara Diamond’s agreement to take over African Diamonds (AFD), which, at press time, was expected to close in early January. Under the deal, Lucara gained full control of Botswana’s AK6 mine, while Botswana Diamonds will hold all of AFD’s other assets. AFD shareholders will also acquire a 26.57 stake in Lucara.
Community Bars De Beers Canada Exploration
The indigenous community Kitchenuhmaykoosib Inninuwug told De Beers Canada that it will not allow any mining on its land as the company has currently proposed at Big Trout Lake, which is about 373 miles north of Thunder Bay, Ontario. In their letter to Ontario’s Premier, Dalton McGuinty, Canada’s Prime Minister, Stephen Harper and the United Nations (UN), the community’s chief and council said the community’s own studies on land use and occupancy must be completed and that full protection of the Big Trout Lake watershed must be implemented before any mining exploration takes place. Kitchenuhmaykoosib Inninuwug has jurisdiction and control over the territory, as well as the final say in all decisions.
Debswana Launches Cut-8 Project
Debswana, the joint mining venture between De Beers and Botswana, officially launched the Cut-8 project at the Jwaneng mine. The construction phase of the project is approximately 20 percent complete and is scheduled to conclude at the end of 2011. Debswana expects to invest up to $3 billion in the project over the next 15 years, the largest single investment in the company’s history and the Botswana mining industry.
The Cut-8 project is expected to extend operations at Jwaneng by eight years to 2025 and ensure additional production of 102 million carats from the mine. When it is completed, the project will transform Jwaneng into one of the biggest open-pit mines in the world.
Stornoway Incurs $5 Million Loss
Stornoway Diamond Corporation increased its asset base during the first fiscal half of 2011 to $111.4 million from the $109.4 million it totaled at the close of fiscal 2010. For the second fiscal quarter that ended on October 31, Stornoway incurred a loss of $5 million and had an accumulated deficit of $143.8 million.
During the period, Stornoway also entered into an agreement to acquire Diaquem Inc.’s 50 percent interest in the Renard diamond project. Once the acquisition closes, subject to shareholder approval, Stornoway will have acquired sole ownership in Renard.
Firestone Hosts First Botswana Rough Tender
Firestone Diamonds launched its first sale of rough diamonds offered outside of the De Beers framework in Botswana from December 6 through December 9, offering 2,500 carats of diamonds from the BK11 mine in Botswana and 12,000 carats from the Liqhobong mine in Lesotho. Jacob Thamage, Botswana’s Diamond Hub coordinator, stressed that the tender marked a significant milestone in the country’s push to expand its diamond-trading platform. He explained that the government issued mining licenses to companies on the condition that they sell goods in the country.
Firestone will hold a cycle of ten tenders in 2011 and expects to sell between 40,000 to 50,000 carats per tender when both of its mines are at full production. The company expects to generate approximately $5 million from each tender and projects that annual sales will total around $50 million.
The company sold 14,673 carats for approximately $1.6 million at its first diamond tender and 12,510 carats from its Liqhobong main pipe for an average price of $98 per carat. There were 2,162 carats sold from the BK11 mine for an average price of $177 per carat.
Article from the Rapaport Magazine - January 2011. To subscribe click here.