Image credit: BlueRock
BlueRock Diamond is considering a diamond investment fund to buy its rough stones during this period of market uncertainty, according to Mining Capital's Alastair Ford.
He said in an interview posted on YouTube by Proactive Investors that BlueRock would then buy the same production back from the investment fund for resale into the open market or at a tender.
“There is a fee for it, 1.25% per monthly transaction, it allows the company to continue with production, cover its operating margins…that’s the type of thing that is needed by mining companies in these unusual situations,” said Ford.
He also said that BlueRock’s production at Kareevlei, in South Africa was now back at pre-lockdown levels.
“Because of the broader situation the company’s expansion plans at Kareevlei, are currently on hold, but the operation as was before the lockdown was imposed is back to normal,” said Ford.
“…so production will be running let’s say 400 000 tonnes and it could be a bit more.”
BlueRock had placed the Kareevlei operation on care and maintenance during the lockdown, with only a small team retained on site to ensure that the plant and machinery was kept in working order and can be brought into production at short notice.
It also reduced costs to an absolute minimum with all but essential staff furloughed.
BlueRock Diamonds recently entered into an agreement with Bonas-Couzyn N.V, part of the Bonas Group to market the Kareevlei diamonds through its Antwerp facility.
The company had been reviewing its sales strategy prior to the COVID-19 pandemic to gain access to the Antwerp diamond market, which attracts significantly more buyers than the South African diamond market.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
