BlueRock Diamonds PLC said that after talks with South Arica’s Department of Mineral Resources and Energy (DMRE), commissioning work has restarted on the new processing plant at the Kareevlei diamond mine.
Both lines of the new plant should be operational within the next two weeks and as part of the commissioning and a build-up to full production.
Mining is suspended currently but using ore stocks built up pre the rainy season means production guidance for the year ended 31 December 2021 of between 22,000 and 26,000 carats produced remains in place though the outcome is likely to be at the lower end, said the statement.
The suspension of mining has impacted near term cashflow expectations, said BlueRock, exacerbated by the fact that there is no planned diamond tender in Kimberley in December 2021.
The company is assessing how best to meet its working capital needs over this period including the potential to finance December 2021 production through its existing relationship with Delgatto Diamond Finance.
Discussions with the DMRE in relation to the issues raised regarding BlueRock's mining activities are ongoing.