News

Advanced Search

Kopane Suspends Lesotho Diamond Production

Dec 1, 2008 6:59 AM   By Avi Krawitz
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... Kopane Diamond Developments has suspended production at its Liqhobong development project in Lesotho due to the current "severe" economic and market turbulence. In a news release, the company noted that economic conditions had caused diamond prices to fall by between 30 percent and 50 percent since October 2008, adding that it was still not clear when they will return to previous levels.

“The suspension of mining operations at Liqhobong will conserve cash and prevent the unnecessary and unprofitable depletion of our diamond resources,” said Tim Read, Kopane's chairman. “It is our opinion that rough diamond prices will recover in the longer term once consumer confidence is restored.”

Kopane owns 75 percent of Liqhobong Mining Development Company (LMDC), which operates the project. The Lesotho government owns the remaining 25 percent.

LMDC has produced 340,000 carats of diamonds at Liqhobong since operations commenced at the end of 2005. The project’s main pipe has an indicated and inferred resource of nearly 30 million carats and the potential to produce at a rate of over one million carats a year, Kopane reported.



NC
Tags: Government, Kopane, Lesotho, Production
Similar Articles
Rapaport Diamond Industry Stock Tracker
May 18, 2017
US stocks fell this week amid political turmoil in Washington, with brick-and-mortar retailers heavily hit. Macy’s...
Crime-Yellow TapeGang of Diamond Fraudsters Arrested
Apr 06, 2017
New York police have arrested 10 men accused of defrauding wholesalers out of diamonds valued at more than...
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2017 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.