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Kimberley Diamonds Suspends Ellendale Operations
'Sharp, Unexpected Decline in the Rough Market'
Jul 1, 2015 2:43 PM
By Jeff Miller
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RAPAPORT... Kimberley Diamonds Ltd. placed its subsidiary, Kimberley Diamond Company (KDC) Pty., which operates the Ellendale diamond mine, into voluntary administration and suspended the mine's operations. The company made a point to state that this action only applied to KDC and not to other subsidiaries, which hold interests in the Lerala diamond mine in Botswana and the Lomer-o-Poyatos project in Spain.
While KDC recorded strong production figures in recent months and reduced its costs, Ellendale's revenue was negatively impacted by a lower recovery grade and size distribution, driving down prices for rough diamonds at auction, according to Kimberley Diamonds. The company specifically reported a much lower-than-expected auction result in Antwerp last week due to a "sharp, unexpected decline" in the rough diamond market.
The Ellendale mine earned the reputation as a leading source for rare, fancy yellow diamonds.
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Tags:
diamond, Ellendale mine, Jeff Miller, Kimberley Diamonds, mining, trading, yellow diamonds
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