LUCARA DIAMOND: HAVE NOT GIVEN UP ON MOTHAE deposit - CEO (Reuters)
STOCKHOLM (Reuters) The mining company Lucara Diamond until further puts an end to the expansion plans of the diamond project in Botswana Mothae does not imply that the company gives up opportunities to expand their business. On the contrary, diamonds will likely be discovered at the prospect of some form, and in addition the company looking for other suitable projects to invest in.
It says CEO William Lamb to Direkt.
"We will not give up in any way, Mothae is far too valuable for that. What we do is we look at other opportunities to mine the ore and extracting diamonds. Maybe we can get along with other mining operators in the area of ??collaboration., I can not promise that it will be a full-scale mine in Mothae, but it will certainly be broken ore there, "he says.
Lucara announced Friday that the weak diamond market in combination with the high cost of infrastructure means that it is not economically feasible to develop the project further in the current situation.
"In particular, the power supply which proved costly., We had anticipated costs on the order of 200 million, but it turned out that only the power line would have cost $ 60 million to it. Such an investment is appropriate in the current situation," said William Lamb.
So far, the company has invested between 12 and 15 million dollars in the project, but then, there have been significant revenues from diamond sales from test mining. The insert is not lost, as the assets are still in place, insisting Lucarachefen.
Parallel to Mothae evaluated are the company for other projects in the area.
"Karowe mine has always been our most important asset and we have now shown that the firm produces high quality diamonds. A mining company needs to be more than an asset to be credible and we are continuously looking for other opportunities," said Lucarachefen, although dare not promise any business this year.
The next sale of rough diamonds from Karowe held on 11 February, by views of Gaborone in Botswana and in Antwerp. Starting this year, however Lucara go over to quarterly reporting of sales.
"The market now know that we produce and sell diamonds continuously. Reporting accurate revenue from each sale only creates unnecessary volatility," said William Lamb.
The next scheduled reporting occasion is on 21 March.
Michael Bernander +46 8 5191 7917