May 02, 2018

Online Auction to Seek Buyer for Kimberley Diamonds’ Lerala Diamond Mine in Botswana

The Lerala Diamond Mine in Botswana, a property of Australian mining company Kimberley Diamonds Ltd, will be put up for sale through an online auction, according to media reports. The mine, which last year was placed under the care of a judicial administration, has failed to find a buyer till now.

Bidding for the mine will commence on May 24 at 5 pm and will close on May 30 at 2 pm, a report by news agency Bloomberg said, quoting a statement by the auctioneers, GoIndustry DoveBid, that appeared in the weekly ‘Monitor’ recently.

It may be recalled that the mine was impacted by low sales and high operating costs. It was reported that against a target production of 357,000 carats a year, over a lifespan estimated at seven years, the mine produced only 59,000 carats in the year leading up to its closure.

The successful bidder will gain control over a property that includes five kimberlite pipes ranging from 0.16 hectare to 2.35 hectares in area, mining rights, a 200 metric tonnes per hour processing plant, a 4.2 megawatt diesel generator and other assets, the reports stated. Those interested in participating in the bidding will have to provide a refundable deposit of 5 million pula ($ 509,000), the reports added.

The mine is said to have probable reserves of 5 million tonnes at a grade of 31 carats per 100 tonnes and inferred resources of 10.3 million tonnes at 31 cpht, Bloomberg reported.