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Botswana Diamond Mine Up for Auction

May 1, 2018 7:05 AM   By Rapaport News
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RAPAPORT... The liquidators of Kimberley Diamonds’ Lerala mine in Botswana will offer the project at an online auction later this month after failing to secure viable bids.

Kimberley placed its Lerala subsidiary into judiciary management — a restructuring option for insolvent companies — in June last year due to a lack of funding, media reports said at the time. Lerala produced about 59,000 carats in the year leading up to its closure, falling short of its annual target of 357,000 carats over a seven-year lifespan, according to Bloomberg.

GoIndustry DoveBid, which will run the auction, listed the available assets as five kimberlite pipes ranging from 0.16 hectares to 2.35 hectares and a 200-tonnes-per-hour processing plant. The sale will also feature a primary jaw-crusher, X-ray recovery equipment and a diesel generator plant. Bidders must pay a $508,000 (BWP 5 million) deposit. The online sale will run from May 24 through May 30.

Sydney-based Kimberley Diamonds also owned the Ellendale mine in Australia, which went into administration — with control of the company passing to an outside specialist — in July 2015.
Tags: Bloomberg, Botswana, Ellendale mine, GoIndustry DoveBid, Kimberley Diamonds, Lerala mine, Rapaport News
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