Diamond Fields International has provided the results of sales of diamonds from its Luderitz sea diamond concession off the coast of Namibia and has temporarily suspended its marine mining operation. Increased operating costs resulting from the strength of the South African rand has temporarily impaired the profitability of the marine diamond contractors resulting in a suspension of marine operations. While Diamond Fields investigates new production options, additional exploration and sampling will be conducted to add resources and value to the one million-carat Namibian marine diamond project.
Diamond Fields’ marine diamonds sales during December, 2003, and January, 2004, by the company’s marketing partner Diamond Tenders Belgium totalled 6,292 carats and secured an average price of $145.82 (U.S.) per carat.
As a result of the increase in strength of the South African rand, operations at the marine diamond deposit have temporarily been suspended. The decision taken in conjunction with Lazig (Pty.) Ltd. and Gemfarm (Pty.) Ltd., the owner and operator of the marine mining vessel mv Anya, has become necessary because the partners operating costs are in rand while diamond revenue and daily hire rate paid to the contractor are denominated in U.S. dollars. Over the course of the past year the rand has appreciated significantly relative to the U.S. dollar impairing the contractor’s margins.
“We believe it is prudent to suspend current mining operations while we work with Lazig and others to explore cost-effective production options including new technology. Over the short term, Diamond Fields International will focus on a sampling program to expand the diamond resource in the license area and significantly increase the value to the project,” said Roger Daniel, Diamond Fields International, operations director.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
