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Diamond Miners Adjust to Fight Against Ebola
Oct 12, 2014 8:16 AM
By Ronen Shnidman
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RAPAPORT... Western diamond mining companies in Sierra Leone have adjusted their operations as the Ebola outbreak in West Africa continues to plague the country's diamond-rich eastern districts.
A country-wide lock-down instituted from September 18 to 21 included the Koidu mine, which is owned by the only industrial-scale diamond producer in Sierra Leone, Octéa Ltd. However, Octéa’s diamond production and sales are now proceeding without issue, according to Brett Richards, the CEO of Octéa’s parent company BSG Resources Limited.
"We do not anticipate the diamond production in 2014 will be negatively affected as a result of the Ebola virus," said Richards. He added, that the company's rough diamond sales were never affected by the outbreak as all the stones recovered from Koidu are sold in Antwerp, not locally.
At the Tongo diamond project, work on a definitive feasibility study for the prospective mine is expected to be delayed by logistical difficulties caused by the virus outbreak and containment efforts. A bulk sample was completed at the site at the end of August, but results from the feasibility study will not be ready for at least another six months.
Stellar Diamonds, the exploration and mine development company managing the project, had anticipated it would be able to provide an updated resource statement and financial model for the mine soon after a bulk sample was completed.
Karl Smithson, the CEO of Stellar, said, “The question is how quickly we can resume work and this is unknown as the Tongo area is in lock-down. He estimated that the definitive feasibility study is now expected to be released in mid-2015, but it could be delayed further if the Ebola outbreak persists or intensifies.
“It is going to get a lot worse before it gets better that is for sure. The virus needs to be contained and then reduced, but the impact on society will go on for much longer,” Smithson added.
While mining continues at the Koidu mine, Octéa has reacted to the health crisis by providing assistance to the government and area residents, including goods, financial aid and even logistical help by utilizing the mine’s equipment.
The company donated sterilized water containers and chlorine for handwashing stations, helped build an Ebola holding center for quarantine of infected individuals and created a new burial ground for Ebola victims, using the mine’s earth movers, among other actions taken.
“To date, Octéa Limited has contributed over $150,000 in direct financial support, in-kind logistical aid and goodwill support and other assistance in collaboration with the country-wide efforts being made to control, manage and eradicate the Ebola virus,” said Richards.
Meanwhile, in Guinea, Stellar Diamonds commenced trial mining at its Baoulé project on schedule. Baoulé is located in an area of Guinea that has not been affected by the Ebola virus to date, the company said, although the health situation of mining staff and the local community was being continually monitored.
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Tags:
Baoule, BSGR, Ebola, Koidu, Octea, Ronen Shnidman, Sierra Leone, West Africa
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