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Lucapa Completes Mothae Expansion
Mar 22, 2021 6:21 AM
By Rapaport News
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RAPAPORT... Lucapa Diamond Company has increased output at its Mothae mine by 45% following an expansion of the site and the installation of a new processing plant.
The project will allow the miner to raise its ore-processing capacity to 1.6 million tonnes per year, from 1.1 million tonnes, it said Monday. Lucapa has also added new machinery to the plant to aid in the process.
The company is working on recommissioning and ramping up the new facility to meet its increased output. It expects to complete that process by the end of the month, and to step up its rough production from the start of the second quarter, it explained.
“[We have] completed the Mothae expansion project on time and within budget, despite the challenges created by the Covid-19 pandemic earlier in January,” said Lucapa managing partner Stephen Wetherall. “[We] look forward to the increased recoveries and economy-of-scale benefits this expansion was designed to provide.”
In December, Lucapa sold 6% of its company stock to Graff subsidiary Safdico to secure the funds it used for the expansion. The miner has an offtake agreement with Safdico under which the manufacturer purchases 100% of the rough from Mothae for a period of two-and-a-half years.
Lucapa’s stock rose 6% in early trading Monday following the announcement.
Image: The Mothae mine. (Lucapa Diamond Company)
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Tags:
COVID-19, Graff, lucapa, Lucapa Diamond Company, Mothae, Mothae Mine, Rapaport News, Safdico, Stephen Wetherall
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