Modern Mining March 2019

DIAMOND MINING

at the site, building a pilot plant to treat the ore, but the real value of Liqhobong has always been the Main Pipe. Firestone, then headed by Stuart Brown, started building the current mine in 2014 and the first diamonds were produced in October 2016. Total capex was approximately US$185 million. “Throughout the development phase, the assumption was that Liqhobong’s diamonds would fetch an average price of US$107/carat,” says Bosma. “In practice, this hasn’t happened and in our first full year of commercial produc- tion – FY-2018 – the price achieved was just US$75/carat, largely due to a depressed mar- ket. Even at this price, Liqhobong generates positive cash flows, with total revenue being US$62,2 million as against on-mine costs of around US$44 million in FY-2018. The prob- lem is the debt we have to service. We have, however, successfully restructured a major portion of this which gives us some flexibility moving forward.” Bosma is the right person to be steering Firestone in a difficult price environment as he has been closely involved with the mine since the start of development. A geologist by profes- sion, he has an in-depth knowledge of diamond mining developed over a long and successful career with De Beers. He joined Firestone in June 2014 as Mineral Resources Manager and in 2016 became General Manager of Liqhobong, in which position he was responsible for the successful ramp up of production at the mine.

Left: The Liqhobong mine showing the 500 t/h processing plant. Below: The main pit at Liqhobong looking west. The mining contractor is Basil Read Mining.

Liqhobong

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March 2019  MODERN MINING  29