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De Beers gets positive on AK6 mine
Brendan Ryan
Posted: Fri, 26 Sep 2008
[miningmx.com] -- The proposed AK6 diamond mine in Botswana should be in operation by 20111 providing power supply issues are resolved.
That’s according to De Beers – the senior partner in the mine – which today confirmed the announcement earlier this week by junior partner African Diamonds that major progress had been made towards getting the mining licence granted.
The De Beers statement said discussions with the Botswana government had focussed on “mitigating the impact of the regional power shortage…..The talks have been constructive and have aimed to find a way to provide the project with a secure and cost-effective power supply, while avoiding undue delay.
“De Beers is confident that the successful conclusion of these discussions will result in AK6 joining Botswana’s world-class stable of diamond mines in 2011.”
The De Beers announcement follows the
statement released by African Diamonds on September 22 which stated that the Botswana government had “not considered” De Beers’ application for a retention licence over AK6.
De Beers had applied for this retention licence previously in an attempt to retain control of AK6 while delaying its development.
That caused a major bust-up with African Diamonds which accused De Beers of trying to stall development of AK6 because of a dispute over marketing arrangements with the Botswana government.
African Diamonds brought a legal action against De Beers in Botswana to halt the application for the retention licence.
That was due for a court hearing on September 22 but the hearing has been deferred “in the light of the progress being made toward a mining licence,” according to the African Diamonds statement.
African Diamonds MD James Campbell said previously the Botswana government wanted the diamonds from AK6 to be sold through a process in
Botswana separate from the traditional De Beers Diamond Trading Company (DTC) system.
He added African Diamonds supported the Botswana government marketing request but De Beers did not.
Today’s statement from De Beers said, “Agreement in principle has been reached between De Beers and the Government for the diamonds from AK6 to be sold through DTC Botswana, a 50/50 joint venture partnership between Government and De Beers, in order to support Government’s beneficiation objectives.”
De Beers group MD Gareth Penny commented, “Government has acknowledged the gravity of the power supply issue and is investigating solutions to address the challenge and ensure the project has a sustainable supply of power.
“We are appreciative of the positive and meaningful engagement that Government has shown throughout this process.
“As Botswana’s largest private investor, De Beers is excited to further our commitment to Botswana’s diamond future
with the development of the multi-billion pula AK6 project.”
African Diamond shares traded unchanged at 54.5p in London following the announcement.
Campbell commented, “the news is highly favourable but I am keeping the bottle of champagne on ice until the mining licence is actually granted.”
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