Monday, February 26, 2024

Gem Diamonds moves closer to mining licence

Gem Diamonds, an international mid-tier diamond mining outfit, has said it has embarked on a bankable feasibility study that is expected to pave the way for the construction of the mine in the Central Kgalagadi Game Reserve (CKGR) by early next year.

The diamond company, which already has ongoing operations in Australia, DRC, Indonesia, and Lesotho, has filed a mining licence for the proposed mining licence in GopeÔÇöwithin the CKGR.
“The development will be financed by a combination of cash and debt and discussions are ongoing with a number of banks in this regard,” the company said in a statement.

However, Gem Diamonds said it is still awaiting the outcome of its mining application as under section 51 (of the Mining Act) they will have to enter into negotiations with the government of Botswana, which will determine the key terms of the licence which are expected to commence in the third quarter of 2008.

If things go according to plan, the environmentally sensitive Gope mine will be in full production by 2011.

Gem Diamonds has an eco-friendly mining programme at Letseng mine in Lesotho, which has happens to be its most profitable mine in its nine portfolio mines in the world.

Gem Diamonds has already submitted a scoping report to government in June these years, which was approved by the Department of Environmental Affairs. And, lately, has been engaged in public participation, meeting with communities within the CKGR and the surroundings to explain its plans to them.

“The mining construction should start early next year and we are confident that the mining licence would be issued within the next six to twelve months,” Haile Mphusu, the General Manager of Gope Mines, told Sunday Standard early in the year.
Gope Mine is scheduled to produce about 1 million carats per annum, with a life-span of 17 years, bolstering Botswana’s position as the premier diamond producer in the world.

“I think we are walking on similar road with government,” Clifford Elphick, the managing director of Gem Diamonds said.
“We have received overwhelming support that we were given during our consultation report with the stakeholders.

“We do have a background of operating in a sensitive area and we understand that we have to look after the environment,” Elphick said.
The Gope Mine operation is expected to be unique in the sense that people will have to spend about two weeks away from the camp and the rest of their families. The model is borrowed from two countries, Australia and Lesotho, where it has been in operation for some years.
“It is very appropriate to do that in a sensitive area like a game reserve, “he said.

As part of its expansion plan, Gem Diamonds has interest in three projects which are under exploration in the DRC. The projects are in Mbelenge, Lubembe and Longatshimo and, if they prove profitable, they will boost its other plans of extending its operations beyond mining.
It is currently planning to start the jewellery manufacturing in DubaiÔÇö an international diamond centre ÔÇö- in a bid to get into the downstream activities.

Gem Diamonds has put together 80 clients across the globe who are fighting for its gemstones at every auctionÔÇöa parallel system from that of De Beers.


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