The main factor determining the current state of the diamond market is the global financial crisis. The situation on the leading financial and stock exchanges is still fairly dramatic. The labour markets in the US, Europe and Japan are also not in the best shape. Under these circumstances the availability of credit for diamond market players has declined drastically.
Alexander Matveyev, Member of the Federation Council of the Russian Federal Assembly, First Deputy Chairman of the Federation Council Committee on Northern Territories and Indigenous Minorities, Mining Engineer, Academician of the Russian Engineering Academy, Doctor of Economic Sciences, Professor, worked as Chief of Industry Department of the Yakutsk Region Committee of the CPSU, Chairman of the Yakutia Planning Committee, Vice-President and First Vice-President of ALROSA.
Valery Vladimirovich Rudakov – chairman of the Board of Directors of CJSC Polyus, chairman of the Committee for precious metals and precious stones of the Chamber of Commerce and Industry of the Russian Federation. In 1999-2002 - Deputy Minister of Finance of the Russian Federation and head of the State Repository for Precious Metals.Lonrho Mining, formerly Nare Diamonds, has agreed to sell its 80 percent stake in the Schmidtsdrift mine to New African Mining (NAM) for $13.35 million, RAPAPORT reported.
Lonrho said late Friday it has given NAM an exclusive option for 14 days to conclude all the necessary documentation and formal agreements for the sale.
NAM agreed to pay a non-refundable option fee of $500,000 for the exclusive right to the project, $7.5 million for the Schmidtsdrift prospecting right, and $5.85 million for the associated mining fleet and equipment.
The Schmidtsdrift mine comprises six contiguous farms along the western bank of the Vaal River in South Africa, and produced 16,805 carats of diamonds between April 2006 and May 31, 2008. These included 338 stones larger than 5 carats in size, amongst which was a rare 235 carat stone.
The mine is 20 percent owned by the Schmidtsdrift Communal Property Association.
Under the agreement, Lonrho will retain sales proceeds of about $6 million from the mine, after payment of debt and other associated costs, which will be used for exploration and development of the Lulo diamond project in Angola.
Lonrho said it decided to divest from Schmidtsdrift in order to focus on the development of Lulo.
“The Lulo project is capable of delivering significant value to shareholders and we believe it is important that the company’s resources are directed towards unlocking the potential value as quickly as possible,” said Charles Mostert, Lonrho Mining’s chief executive officer.
Rough&Polished
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