Modern Mining October 2016

MINING News

New management at Kimberley Diamonds

ASX-listed Kimberley Diamonds Ltd (KDL), which operates the newly recommissioned Lerala diamond mine in Botswana, has announced that Noel Halgreen, previously Managing Director of KDL, has resigned from the board and will be leaving KDL in six months after serving out his notice period as a consultant. Alex Alexander becomes Executive Chairman during the transition stage, while KDL searches for a new MD. Brett Thompson, KDL’s current Chief Technical Officer, has been appointed to the newly created role of Chief Operating Officer, and will be responsible for all min-

ing, operations and corporate functions of the company and its Botswana subsidiary, Lerala Diamond Mines Limited. Thompson is a mining engineer with over 30 years of operational, technical and corporate management experience in Africa, South America and Australia with 15 years in the diamond industry and sig- nificant experience in coal, gold/silver and base metals operations. Prior to joining KDL in March 2015, Thompson worked for five years with Anglo American. Before this, he was the CEO of AIM-listed diamond company, Pangea DiamondFields, and has held

senior positions with a number of other diamond juniors operating in Africa. He began his mining career as a gradu- ate engineer at Mount Isa Mines before moving to De Beers in South Africa in 1988 where he gained experience at Koffiefontein Mine and the Namaqualand Mines alongside a later stint as Assistant General Manager at De Beers' Kimberley Mines. The management changes come at a time when Lerala is struggling with its ramp up. In its latest presentation on the project, KDL reports that average daily head feed has steadily increased over the

ramp-up phase and the plant has proven capable of operating at and above its designed capacity of 200 t/h. KDL nevertheless notes that “operating the recom- missioned plant for three months has revealed shortcomings in some pre- existing elements of the plant. This, combined with the highly abrasive char- acter of the internal waste within the kimberlite ore, has significantly impacted the plant’s ability to oper- ate at maximum capacity on a consistent basis.” KDL says it is hoping to address these issues over the next four months and estimates the cost of remedial measures at A$1,57 million. 

The process plant at the Lerala diamond mine in Botswana. The plant was recommissioned earlier this after a major upgrade (photo: KDL).

Finance facility for Kabwe tailings project secured AIM-listed BMR Group, which is focused on the recovery of lead and zinc from the tailings deposits of Zambia’s oldest mine at Kabwe, says that – in conjunction with its subsidiary Enviro Mining Limited (EML) – it has now entered into the anticipated project construction and trade finance facility for up to US$5,2 million with African Compass International Limited (ACI). The lat- ter is a private South African group engaged in mining, energy and agri-business.

Alex Borrelli, Chairman of BMR, com- mented: “This facility represents a defining moment for the company as the financing has underpinned our planned cost of the plant at Kabwe. We are pleased to have delivered this facility for the benefit of our shareholders who have supported the management team in our endeavours for processing the Kabwe tailings. The facility also provides us with the funding necessary for exercising the option agreement on the Star Zinc licence. Our continuing progress on our schedule of works at Kabwe remains in line for completing the plant construc- tion for commissioning in 2017.” 

various milestones – through to commis- sioning of the Kabwe plant and proof of saleable product – up to US$4,2 million for use in connection with the plant, andmate- rials processed, at Kabwe. In addition, the facility provides for the drawdown of US$1,0 million to sat- isfy the consideration payable to exercise the option agreement with Bushbuck Resources Limited for the acquisition of its Star Zinc Large Scale Prospecting Licence 19653-HQ-LPL in Zambia, as announced on 16 August 2016.

The facility provides that ACI will make available to EML upon achievement of

16  MODERN MINING  October 2016