Namibian Minerals has resumed diamond production by the mining vessel, MV Kovambo, which is equipped with the company’s NamSSol seabed mining tool. The Kovambo has commenced mining on Namco’s mining lease ML36A in Baker Bay, off the Namibian south coast.
This week’s resumption of mining is the culmination of an 18-month process to repair, improve and recommission the NamSSol mining tool, together with its control and recovery systems aboard the Kovambo. The NamSSol was damaged during mining operations on Jan. 7, 2001. The Kovambo has re-entered service ahead of schedule. Repairs were carried out in Cape Town and were expected to take until the end of this month to complete. The NamSSol was loaded aboard the Kovambo, which departed Cape Town on May 17 and sailed to Namibia for offshore commissioning.
The NamSSol responded well during the formal commissioning process with only minor tuning and repairs necessary. The Kovambo successfully conducted system tests and trial mining in Halifax Bay, near the Namibian port of Luderitz, in early June. The Kovambo sailed south to Baker Bay last week to commence mining operations. The NamSSol mining tool is working well and the Kovambo’s mining rate is expected to increase over the third quarter of 2002 as the operating crew brings the mining system up to its full production capacity.
Following completion of the repairs to the NamSSol mining tool and associated works on the Kovambo, Namco submitted its final claim to its insurers. This was followed by a final settlement of the insurance claim associated with damage to the NamSSol last year, in the amount of approximately $2-million (U.S.). The company has already received a total of $9-million (U.S.) from its business interruption insurance claim arising from the NamSSol accident and returning the NamSSol to production.
Namco’s chief executive officer, Greg Walker, said: “We are pleased to advise that the Namco fleet now encompasses the largest mining capacity ever operated by the company. For the first time, Namco has both the NamSSol and the Nam 2 mining tools in operation, and we anticipate a commensurate increase in diamond production over the remainder of the year.”
WARNING: The company relies upon litigation protection for “forward-looking” statements.
