Gem halts Ghaghoo mine amid low prices

JOHANNESBURG (miningweekly.com) – Gem Diamonds has placed its Ghaghoo mine, in Botswana, on care and maintenance with immediate effect.

Although the development of the mine had progressed well and reached the point where it would shortly be able to start full commercial production, the material fall in the diamond price from $210/ct in early 2015 to $142/ct in December 2016, had emphasised the weak state of the diamond market for the category of diamonds produced at Ghaghoo.

“With our focus on profitable production, the decision has been made to place the asset on care and maintenance and to continue to monitor market conditions for a time when commencing full production would make economic sense,” the company said in a statement.

It is anticipated that, post one-off settlement costs, this will result in a yearly care and maintenance cost of $3-million.