Tuesday, August 2, 2011

Rockwell Diamonds’ growth plan to require R300m-plus

JSE-listed miner Rockwell Diamonds’ organic growth plans would require an investment of about R325-million, the company said on Tuesday.

The miner currently produces about 2 500 ct/m from its Holpan/Klipdam and Saxendrift operations in South Africa, but is targeting 10 000 ct/m in the longer term.

To kick start additional growth, Rockwell plans to redevelop the Tirisano mine, which it is busy buying. The company estimated that it would take about R73-million to resume production from this mine in the second half of 2012. Tirisano is a past producer that has been on care and maintenance since 2008.

Rockwell also planned to recommission its Wouterspan and Niewejaarskraal projects within the next two years.

It anticipated that the cost of recommissioning Wouterskraal would add up to about R122-million, while Niewejaarskraal would amount to about R130-million.

The diamond miner also completed a prefeasibility study for the continued mining at Saxendrift in the Northern Cape.

Rockwell said that it was advancing its plans to access the capital necessary to meet its future production goals.

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