Weak market situations, nonetheless, compelled Gem Diamonds to place Ghaghoo beneath care and upkeep in February 2017.
Huge Sources stated the acquisition of Gem Diamonds Botswana Proprietary Restricted (GDB) was a compelling alternative to ship diamond manufacturing in a comparatively quick interval, from a absolutely geared up mine.
Gem Diamonds added the deal was consistent with its technique to eliminate noncore belongings and give attention to manufacturing at Letšeng.
As of 31 December 2020, the gross belongings of GDB had been $3.5 million and the loss attributable to GDB for the 12-month interval ended 31 December 2020 was $3.3 million. Huge and Botswana Diamonds will take over all belongings and assume all liabilities of GDB, the events stated.
In a separate statement, Botswana Diamonds stated it was assured that the asset’s working and monetary efficiency could possibly be considerably improved. Towards a backdrop of a strongly recovering diamond market, the miner believes a return to the nameplate capability of 1.25 million tonnes yearly is possible.
The corporate added that Ghaghoo was by its KX36 mission, additionally positioned in Central Kalahari, Botswana, which implies there are attainable synergies between the 2 operations.
Give attention to Lesotho
The Ghaghoo mine – beforehand known as Gope – has been a supply of issues for Gem Diamonds ever since its acquisition. The miner spent about $85 million creating the mine, which got here on-line in 2015 solely to be shut down two years later. Within the interval, Gem recovered lower than 150,000 carats.
The mine is presently flooded after an earthquake in 2017 ruptured the underground water seal.
Ghaghoo just isn’t Gem Diamonds’ solely failed try to increase operations past Lesotho. In 2008, the corporate shut down the Cempaka alluvial mine in Indonesia. 4 years later, it needed to promote its Ellendale mine in Australia, a supply of uncommon yellow diamonds, for $15 million.
Letšeng has greater than made up for Gem’s unsuccessful belongings. Since buying the mine in 2006, Gem Diamonds has discovered 5 of the 20 largest white gem high quality diamonds ever recovered, which makes the Letšeng mine the world’s highest greenback per carat kimberlite diamond operation.
At a mean elevation of three,100 metres (10,000 toes) above sea stage, Letšeng can be one of many world’s highest diamond mines.