Diamond Fields International has entered into a joint venture agreement with Samicor Mining Services Pty. Ltd. to carry out diamond mining operations on a 50/50 basis on Diamond Fields’ marine mining licence ML111, located near Luderitz, Namibia. Although diamond production will be split equally between the parties, operational costs to DFI will be capped to a fixed U.S.-dollar amount. Diamond mining operations will use Samicor’s chartered vessel, mv Kovambo, which is equipped with the third-generation SeaBed Crawler, based on the Namssol crawler mining system, and a diamond-processing plant.
Samicor Mining Services is owned by LL Mining, the mining arm of the Leviev group of companies, which is one of the world’s largest diamond companies.
The mining system forming part of the mv Kovambo has proved itself capable of very high and consistent production levels in the geological conditions found in the Marshall Fork marine deposits. The SeaBed Crawler mining system was successfully deployed in Namibian Minerals’ (Namco) Luderitz Bay grant (ML51) licence area, which is immediately adjacent to Diamond Fields’ Marshall Fork concession. It commenced mining operations in 1998 on Namco’s cross-border extensions to the Marshall Fork deposits, and in total produced approximately 400,000 carats generating an estimated $60-million (U.S.) in revenue, of which 95 per cent were gem-quality diamonds. Production from these extensions peaked at over 200,000 carats in 1999, including a single day when 16,271 carats were recovered.
The SeaBed Crawler is a remotely controlled tracked mining vehicle with very high production capacity. It is equipped with a powerful excavation arm and centrifugal dredge pump. The mv Kovambo is a 104-metre, 3,300-ton vessel equipped with an integrated mining system developed at a cost of approximately $30-million (U.S.), including the upgraded SeaBed Crawler mining tool, which includes launch, recovery and heave compensation equipment, a 50-tonne-per-hour dense media-processing plant and a final recovery X-ray sorting plant. The SeaBed Crawler mining system was purchased by Samicor following the liquidation of Namco last year, and was specially designed by Namco for diamond recovery from similar deposit to that of the Marshall Fork deposits.
“We are delighted to have concluded this agreement and believe the joint venture with Samicor will prove to be a powerful alliance between Diamond Fields International and one of the world’s largest diamond conglomerates. This joint venture will optimize our high-grade marine diamond concession by applying outstanding technology specifically designed to mine in the conditions found within our concession. We look forward to a significant increase in the level of diamond production from ML111, resulting in enhanced cash flow for the company. The deployment of crawler-based technology for the first time on Diamond Fields’ Luderitz concession will place DFI at the uppermost level of marine mining operations worldwide,” says Gregg Sedun, president and chief executive officer of Diamond Fields International. Pictures of the mv Kovambo and SeaBed Crawler are available for viewing at www.diamondfields.com.
The mv Kovambo is berthed in Cape Town harbour, undergoing refurbishment and maintenance work on the vessel and associated mining plant. Diamond mining operations are scheduled to recommence on the Luderitz concession by the end of May, 2004. The term of the joint venture agreement is for an initial six-month period, with Diamond Fields having the sole option to renew the joint venture on the same terms for a further six-month period. The agreement between DFI and Samicor is subject to the parties agreeing to an acceptable mine plan within a 45-day period.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
