Kimberley Diamonds announces Lerala mining contract

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Image credit: kdl.com.au

Kimberley Diamonds Ltd (KDL) announced that its Botswana subsidiary, Lerala Diamond Mines Limited, has awarded Basil Read Botswana (BRMB) with a contract for the open pit mining operations at the Lerala Diamond Mine.

Image credit: kdl.com.au

The mining contract was awarded following a two-stage competitive tender process in which eight qualified companies competed for selection into a shortlist of three selected companies, from which BRMB was ultimately selected.

The agreement, which covers the initial five years of mining with an option to be extended further, includes competitive rates for drilling, blasting, loading and hauling of ore and waste, and has an anticipated total value of around $A47 million at the current exchange rates.

According to the ASX announcement by KDL, Basil Read is due to mobilise staff and equipment to the site later this month, with mining anticipated to commence during March.

Production is scheduled to reach nominal output, in line with commissioning of the processing plant, in mid-2016.