[miningmx.com] –DIAMOND mining company Trans Hex said on Wednesday that its South African carat production has been below target for the year to date, primarily as a result of grade under-performance at Baken Mine , with an average of 1.30 carats/100m3 against budget of 1.75 carats/100m3.
It is expected that the Baken grade will recover during the second half of the year, the company said.
The group’s May 2010 sale amounted to R114.7m, at an average price of $927 per carat, reflecting continued strong demand and prices for Trans Hex’s rough diamond production.
Following the signing of the mining contract for Project Luana in Angola, in which Trans Hex has a 33% interest, in May, pilot mining operations commenced in July.
Stockpiled exploration and pilot production of 26 452 carats was sold subsequently, at an average price of $312 per carat, realising total proceeds of over $8.2m. A minimum of 8 300 carats will be sold during September.
The Luana partners have agreed to a one year business plan which will result in the mine initially being developed from internally generated funds.
Projects Luarica and Fucauma, in which Trans Hex holds 35% and 32% respectively, remain under care and maintenance, it said.
