BlueRock Diamonds Plc announced measures to restrict operations at the Kareevlei diamond mine in South Africa, where 50% of its workforce are off sick due to Coronavirus (COVID-19).
A statement said there are 24 reported cases amongst the Kareevlei workforce and the remainder of absences are due to contacts to those cases. In all cases reported to date, no employees have experienced serious symptoms, BlueRock added.
In response, the company has decided to suspend mining and crushing activities until January 3, though in the meantime diamond production will continue through the processing of crushed ore stockpiles.
The potential impact on near term cashflow is partially offset by a successful private sale of a small parcel of diamonds for a total US$545,000 – with an average price of US$380 per carat. The parcel included a high value 11.2 carat stone which was priced at US$97,000.
"Restricting mining and crushing activities at Kareevlei is a difficult but unfortunately necessary and enforced step that we have decided to take as the health and safety of our employees is our top priority,” said chairman Mike Houston.
“The closure comes at a very unwelcome time as both lines are now operational, and management has been focusing on ramping up production.
“The company expects to report on full-year production during the middle of January where, as previously noted, the company will be reporting 2021 production ahead of the lower end of its full year production guidance.
“We will continue to assess the impact of the pandemic on our operations as we move into 2022 and will report further as and when events unfold."