Production at Diamondcorp Plc’s (LON:DCP) Lace mine in South Africa has been temporarily suspended on the order of the Department of Mines following an incident involving explosives in which a miner’s assistant was injured.
The Department of Mineral Resources has ordered that all miner’s assistants handling explosives should undertake refresher safety training.
This training commenced over the weekend and is due to be completed by 20 July.
At that point Diamondcorp expects to be allowed by the Department of Minereal Resources to resume production. In the meantime, tailings will be fed through the plant.
In an overall financial sense there ought not to be any material adverse effects to the company as a result of the stoppage, although the monthly ore throughput target of 30,000 tonnes will now be missed.
However, Diamondcorp expects to return to the 30,000 tonne rate of production in August and plans to make up the July shortfall by September.