Rockwell in Klipdam contract diamond mining deal

Rockwell Diamonds has concluded a three-year contract mining agreement with CML Operations at its Klipdam Mine, in South Africa.
It said in a statement that in addition to the mining contract, a sale agreement had also been entered into to divest of Klipdam's earthmoving fleet at book value over a two-year period.
This, it said, would further reduce the cost base at the mine while the mining contract should lead to higher mining efficiencies.
Rockwell would also make minor adjustments to the processing plant, although the overall monthly capacity of the mine would remain unchanged at 100,000 m3, providing sufficient resource for the contract-mining term.
“The appointment of a contract miner at Rockwell represents a step change in our operating model,” said company chief executive James Campbell.
“This significant development should enable us to focus on our core competencies, being the identification and proving of quality diamond resources and the concomitant recovery and marketing of high value, gem quality diamonds.”
He said a similar approach would be adopted at the Saxendrift Hill Mine, which is currently under construction.
Rockwell said although the remaining mine life of Klipdam was three years and had a profitable history, its financial performance - over the past two years - had been negatively impacted by high unit costs, as well as poor earthmoving and plant availabilities.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished