Botswana Diamonds had hoped to commence operations in the second half of 2023 at the Thorny River hard rock kimberlite dyke system in South Africa; however, the company was unable to secure the necessary mining permits in time.
Company managing director James Campbell told Rough Polished's Mathew Nyaungwa from Dublin, where he was attending an information meeting, that the South African government did not give any mining permits last year.
However, he said that the permits will likely be granted soon.
In the meantime, Botswana Diamonds had been extracting diamonds from Marsfontein while waiting for Thorny River mining permits.
However, the company suspended operations at Marsfontein as a result of a decline in diamond prices.
Campbell said that Botswana Diamonds will determine whether to mine Marsfontein and Thorny River simultaneously based on economic considerations.
Below are excerpts from the interview.
When do you expect to resume operations at Marsfontein, and what are the conditions under which this will happen?
We need to see where the diamond market is headed, as trading only really resumed [last] week. We only need a small improvement in the price, which we believe is sustainable, for us to re-commence operations.
What forced you to place the operation under temporary care and maintenance?
From the Annual Report: Site establishment commenced at the end of January 2023, with the first diamonds being recovered in March 2023. In October 2023, the operations were placed on care and maintenance following a greater than 60% drop in diamond prices year-to-date, combined with a greater than 30% increase in fuel costs, which make up more than 50% of operating costs.
How many carats did you recover from the Marsfontein operation?
[A total] 1,741 carats of diamonds were recovered from the operations, with the largest stone being 24.6 carats.
Was the output what you expected from the operation?
As there is no grade estimate for the Marsfontein dumps, it is difficult to forecast the carat output.
How optimistic are you about receiving Thorny River mining permits?
It has been widely reported that the regulator approved no mining licences or permits in 2023. It has equally been widely reported that they are working hard to resolve this, so we expect the mining permits shortly.
When you move to a larger operation at Thorny River, what will happen to Marsfontein in the future?
We can operate both or one, depending on the economics.
What is the level of interest in Ghaghoo from potential partners?
Sadly, it is not as much as we had hoped, but there is emerging interest coming out of Botswana.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished