Modern Mining July 2019

MINING News

BlueRock reports record production at Kareevlei

BlueRock Diamonds, the AIM-listed diamond producer which owns and oper- ates the Kareevlei diamond mine in the Kimberley region of South Africa, reports a record production of 3 516 carats in Q2-2019, more than four times the fig- ure for Q2-2018. Processed ore totalled 78 759 tonnes, up 130 % on Q2-2018, at a record grade of 4,46 cpht. The average price achieved was US$430/carat on sales of 2 517 carats. A 24,9-carat gem quality stone, the larg- est recovered to date at the mine, sold on

auction for a record US$190 000 in June. Earlier this year in February, BlueRock reported the recoveries of an “exceptional” 8,97-carat stone and a 16,28-carat diamond of gem quality within days of each other. In its Q2 production update, BlueRock says that since the newmanagement team started in April 2019, operational perfor- mance at Kareevlei has been transformed. Volumes are running at almost double the average monthly rates for 2018, leading to a consequent increase in the number of carats produced. Smarter mining and the

The 24,9-carat stone recovered in June (photo: BlueRock).

consequent lower dilution have also led to an improved grade and the increased volumes have resulted in the expected increase in the incidence of larger and higher grade stones. May (29 200 tonnes) and June were record months with June produc- tion exceeding 34 000 tonnes. This was achieved without the benefit of the bud- geted planned plant improvements and was largely due to the new management team introducing stronger operating disciplines, the extended working hours through the commencement of 24/7, 365‑day operations, as well as improved plant availability. BlueRock says it is confident that the near-term monthly production target of 40 000 tonnes is achievable and continues to expect that it will be operating profit- ably in the second half of 2019. Importantly, the grade from the KV1 kimberlite pipe continues to improve in part from smarter mining reducing the commitment to unlocking value across the continent and it is our belief that the collaboration with local stakeholders will benefit the local community and economy in the long-term,” says Witness Kamera at Nedbank CIB. Nedbank CIB underwrote the entire transaction and then began the process of distributing a portion of the exposure in Tanzanian shillings. Lenders who expressed interest provided non-binding expressions of interest and, based on the responses received, final commercial terms were dis- tributed to banks. In order to accommodate indigenous Tanzanian banks, their accession into the

The processing plant at Kareevlei (photo: BlueRock).

Nedbank CIB pioneers dual-currency mining deal In a landmark dual-currency deal for Tanzania, fully underwritten by Nedbank CIB, Geita Gold Mining Limited (GGML) was able to borrow US$115 million with the par- ticipation of local banks at a time when local regulations were evolving.

indigenous enterprises in the mining sec- tor. That includes the provision of financial services. Tanzanian banks have traditionally had limited interaction with the large global mines that operate in the country and typically procure financing elsewhere. In addition, foreign investment in Tanzania’s mining sector has been muted since the imposition of taxation-linked fines on Acacia Mining. “Nedbank CIB is proud to have facilitated another first for the continent in secur- ing this deal. We are more steadfast in our

GGML is one of the largest corporates in Tanzania, and one of the largest mines in the AngloGold Ashanti portfolio. The mine required project financing to expand underground operations. However, in 2018 the Tanzanian government introduced new local content regulations that sought to achieve broad-based participation of

4  MODERN MINING  July 2019