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Firestone Diamonds Delays Liqhobong Mine Launch
Jun 23, 2015 3:13 AM
By Ronen Shnidman
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RAPAPORT... Firestone Diamonds delayed the launch of its Liqhobong mine in Lesotho to the fourth quarter of 2016, while confirming that constructions costs would remain within budget. Previously, the company projected that construction of the new plant at the mine would be completed by the end of the first half of 2016 at a cost of $185.4 million. Firestone reported that $68.5 million (ZAR 830 million) had already been spent on the project as of May 31.
"Despite adverse weather, increased overburden and the larger rocks encountered at the site, the project continues to make good progress," said Stuart Brown, the CEO of Firestone.
The company said that project costs would increase by $12.9 million (ZAR 156 million) as a result of the need to remove an increased quantity of overburden from the plant site and delays caused by uncooperative weather. However, Brown said that the added project expenses were covered by the initial budgeted amount due to foreign exchange gains, the project's contingency reserve funds and savings on a power grid project.
Firestone reduced the costs of connecting Liqhobong to Lesotho's national power grid by expanding the power project to include a connection to the neighboring Kao mine owned by Storm Mountain Diamonds, which agreed to contribute half the costs of the expanded power project, resulting in savings of $5.8 million. Firestone noted that the power grid project was progressing ahead of schedule and on budget. Connecting the mine to the electricity grid will reduce diesel fuel costs incurred by on-site generators during the later phases of construction and when mining operations commence.
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Tags:
construction, Firestone Diamonds, kao, Lesotho, Liqhobong, Ronen Shnidman, Storm Mountain
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