Kimberley’s last diamond miner, Ekapa, struggles to stay afloat as artisanal miner deal unravels

KIMBERLEY Ekapa Mining, the last major diamond company operating in Kimberley, has imposed a three-month, 12.5% salary reduction across the board on its staff in an attempt to remain economically viable in the face of slumping diamond prices and renewed problems with illegal miners on its property.

The operation was formerly run as a joint venture with London-listed, Petra Diamonds, which sold its 75.9% controlling stake in July last year to partner Ekapa for R300m.

At the time, Ekapa was experiencing major problems with illegal miners operating on its properties, but had – hopefully – reached a workable solution after surrendering 600 hectares of its ground to the illegal miners provided they stayed off the rest of the company’s lease area.

That was in terms of a deal brokered by the Department of Mineral Resources & Energy and the Sol Plaatje Municipality which runs Kimberley. The deal, lauded at the time by mines minister, Gwede Mantashe, was called the Batho Pele initiative and the former illegal miners were reclassified as artisanal miners.

Yet KEM CEO, Jahn Hohne, has now revealed that KEM is still spending R3m a month on security measures to keep the miners off mine property after further incidents including arson on some of the company’s haul vehicles.

Hohne could not be reached directly for comment.

In reply to written questions the company issued a statement saying: “Kimberley Ekapa Mining is reliably informed that an alleged new third force of illegal miners is attempting to muscle in and around the Batho Pele initiative.

“They are using force; trespassing; conducting illegal mining; sabotaging mine infrastructure and allegedly being supported by illegal diamond traders”.

Asked what was being done about the situation, the company replied: “Kimberley Ekapa Mining is working closely with all relevant stakeholders … to ensure the success of the initiative”.

According to the statement the current crunch in the global diamond market, which has hit small diamond prices particularly hard, “… equates to an approximately 20% year-on-year price decrease in dollar terms for Ekapa’s mining operations in Kimberley”.

Hohne had originally proposed a 25% wage cut which was vehemently rejected by the National Union of Mineworkers and the union has also rejected the 12.5% cut now imposed.

This is despite Hohne’s commitment that the reductions will be repaid “… from the earliest available distributable profits when the new business model is successful”.

The statement said management was engaging directly with the NUM in the Northern Cape and that “… at the time of this response Kimberley Ekapa Mining had not received any formal notification of a dispute being declared”.

Source: DCLA

Kimberley’s last diamond miner, Ekapa, struggles to stay afloat as artisanal miner deal unravels

KIMBERLEY Ekapa Mining, the last major diamond company operating in Kimberley, has imposed a three-month, 12.5% salary reduction across the board on its staff in an attempt to remain economically viable in the face of slumping diamond prices and renewed problems with illegal miners on its property.

The operation was formerly run as a joint venture with London-listed, Petra Diamonds, which sold its 75.9% controlling stake in July last year to partner Ekapa for R300m.

At the time, Ekapa was experiencing major problems with illegal miners operating on its properties, but had – hopefully – reached a workable solution after surrendering 600 hectares of its ground to the illegal miners provided they stayed off the rest of the company’s lease area.

That was in terms of a deal brokered by the Department of Mineral Resources & Energy and the Sol Plaatje Municipality which runs Kimberley. The deal, lauded at the time by mines minister, Gwede Mantashe, was called the Batho Pele initiative and the former illegal miners were reclassified as artisanal miners.

Yet KEM CEO, Jahn Hohne, has now revealed that KEM is still spending R3m a month on security measures to keep the miners off mine property after further incidents including arson on some of the company’s haul vehicles.

Hohne could not be reached directly for comment.

In reply to written questions the company issued a statement saying: “Kimberley Ekapa Mining is reliably informed that an alleged new third force of illegal miners is attempting to muscle in and around the Batho Pele initiative.

“They are using force; trespassing; conducting illegal mining; sabotaging mine infrastructure and allegedly being supported by illegal diamond traders”.

Asked what was being done about the situation, the company replied: “Kimberley Ekapa Mining is working closely with all relevant stakeholders … to ensure the success of the initiative”.

According to the statement the current crunch in the global diamond market, which has hit small diamond prices particularly hard, “… equates to an approximately 20% year-on-year price decrease in dollar terms for Ekapa’s mining operations in Kimberley”.

Hohne had originally proposed a 25% wage cut which was vehemently rejected by the National Union of Mineworkers and the union has also rejected the 12.5% cut now imposed.

This is despite Hohne’s commitment that the reductions will be repaid “… from the earliest available distributable profits when the new business model is successful”.

The statement said management was engaging directly with the NUM in the Northern Cape and that “… at the time of this response Kimberley Ekapa Mining had not received any formal notification of a dispute being declared”.

Source: DCLA

GEM DIAMONDS OPTIMISTIC ABOUT LARGE DIAMONDS’ PRICES DESPITE MARKET

Gem Diamonds, which operates the Letšeng diamond mine in Lesotho, has published its sales performance for the first half of the year ended June 20, 2019. Gem Diamonds sold 55,714 carats during the period, achieving an average price of $1,697 per carat – 10% more than the average price for H2 2018. Revenue for the period totaled $41.6 million USD.

During the period, the miner sold a 13.32 carat pink diamond for a Letšeng record of $656,934 per carat, and recovered three diamonds greater than 100 carats. It sold 15 diamonds for more than $1 million each. Gem Diamonds added that it is on track to deliver its targeted $100 million “in incremental revenue, productivity improvements and cost savings over the 4-year period to end 2021”.

Gem Diamonds concluded by announcing that prices for the smaller and commercial goods “have been under pressure for some time with the larger goods having been less affected, although showing recent signs of weakness”. However, the miner expects “Letšeng’s unique, ultra-high-quality goods to be less vulnerable over time to market pressures”.

Source: DCLA

GEM DIAMONDS OPTIMISTIC ABOUT LARGE DIAMONDS’ PRICES DESPITE MARKET

Gem Diamonds, which operates the Letšeng diamond mine in Lesotho, has published its sales performance for the first half of the year ended June 20, 2019. Gem Diamonds sold 55,714 carats during the period, achieving an average price of $1,697 per carat – 10% more than the average price for H2 2018. Revenue for the period totaled $41.6 million USD.

During the period, the miner sold a 13.32 carat pink diamond for a Letšeng record of $656,934 per carat, and recovered three diamonds greater than 100 carats. It sold 15 diamonds for more than $1 million each. Gem Diamonds added that it is on track to deliver its targeted $100 million “in incremental revenue, productivity improvements and cost savings over the 4-year period to end 2021”.

Gem Diamonds concluded by announcing that prices for the smaller and commercial goods “have been under pressure for some time with the larger goods having been less affected, although showing recent signs of weakness”. However, the miner expects “Letšeng’s unique, ultra-high-quality goods to be less vulnerable over time to market pressures”.

Source: DCLA

Botswana Diamonds Shares Jump On Licence Extension

Shares in Botswana Diamonds PLC jumped Thursday after it extended two “strategic” diamond licences for further two years, as it considered forming a joint venture to develop the projects.

Shares in Botswana Diamonds were 9.9% higher at 0.54 pence in London on Thursday.

Botswana Diamonds – through its wholly-owned Sunland Minerals Ltd subsidiary – extended the Prospecting Licences PL232 and PL235 in Botswana to the end of September 2021.

The firm explained the “key” licences were “strategically located” in the centre of the Kalahari Desert in Botswana, covering 500 square kilometres. Botswana Diamonds has already identified “prospective drill ready targets” following “intensive” work at the sites.

Botswana Diamonds said it was “already in extended discussions” with a “major” diamond producer regarding the formation of a joint venture for the next phase of the work on the licences.

Source: DCLA

Botswana Diamonds Shares Jump On Licence Extension

Shares in Botswana Diamonds PLC jumped Thursday after it extended two “strategic” diamond licences for further two years, as it considered forming a joint venture to develop the projects.

Shares in Botswana Diamonds were 9.9% higher at 0.54 pence in London on Thursday.

Botswana Diamonds – through its wholly-owned Sunland Minerals Ltd subsidiary – extended the Prospecting Licences PL232 and PL235 in Botswana to the end of September 2021.

The firm explained the “key” licences were “strategically located” in the centre of the Kalahari Desert in Botswana, covering 500 square kilometres. Botswana Diamonds has already identified “prospective drill ready targets” following “intensive” work at the sites.

Botswana Diamonds said it was “already in extended discussions” with a “major” diamond producer regarding the formation of a joint venture for the next phase of the work on the licences.

Source: DCLA

Russian Model Shows Off Lamborghini Aventador Encrusted With Two Million Diamonds

With London’s supercar season underway, it’s only natural that you will see a variety of Ford Fiestas, Volkswagen Polos and Vauxhall Corsas. Who are we kidding, eh?

The streets are actually packed with extravagant cars such as a £280,000 Rolls Royce Dawn, a £140,000 Porsche 911 GT3 and even a Bugatti Chiron worth an unbelievable £2.5 million. Wonder whether you can get it on finance.

Despite these, it was Russian model Daria Radionoca’s Swarovski crystal encrusted £350,000 Lamborghini Aventador that got the most attention.

According to the MailOnline, the 26 year old studied business management in London and now customises fur and leather products for wealthy clients.

So, now we know where she got the inspiration from herself, it is believed that the revamp took 700 man hours and over two months to apply two million of the crystals. Phew, bet she didn’t do that on her own.

Daria clearly likes her cars as well because she had previously owned a Lamborghini Huracan and a Mercedes CLS which she also adapted to suit her style. Wonder how much she forks out on insurance though…

Daria lives in Knightsbridge, central London, and is just one of 600 owners of the SuperVeloce version of the V12 model.

As well as this supercar, the model is CEO of two companies: DRJACKETS by Daria R. and a beauty salon called Royale Dolls Beauty.

She has over 150,000 followers on her personal Instagram account and in a recent Instagram Q&A on her story when she was asked how she could afford the whip, she said: “If you work as hard as I do – then you would afford one as well, even at a younger age. Whatever I show on Instagram – that’s what I decide to show.

“There is much more behind all these fancy pictures. I’m a very hardworking and ambitious person and I work 24/7, even when I sleep my mind is always on and always thinking about work and ££.

“I love luxury, I don’t want to depend on anyone – hence I’m working like crazy and being able to afford whatever I want.” Fair play to her.

When someone asked how she got insurance on the SV (SuperVeloce), she wrote: “Everything is possible, it’s just a matter of £££££. I’m paying way too much for insurance but this car is worth it”.

Source: DCLA