Firestone keeps BK11 mine closed

The United Kingdom based diamond-mining company, Firestone Diamonds, has lost over £2.4 million (P28 million) on maintenance of the BK11 mine, which was closed nearly two years ago, BG Business has learnt.

The operators of Liqhobong Mine in Lesotho, and BK11 Mine in Botswana revealed in their financial results that for the financial year ending June 301 2013, £0.4 million (P4.6 million) was spent on BK11 Mine’s care and maintenance programme for the year. Firestone also had to part with a net working capital payment of £0.7 million (P8.5 million) and a repayment of £1.3 million (P14.9 million) of debt financing bringing the total cash cost of the BK11 Mine for the financial year to £2.4 million (P28 million), which was funded from an opening cash of P4.6 million and funding from the parent company of P23 million.

The Mine, which is owned by Firestone Diamonds, halted its operations in March 2011 after the Board of Directors found it unsustainable to operate in the face of decreasing diamond demand and falling diamond prices. Firestone Group exploration manager Polite Khutjwe recently observed that overall diamond market conditions across the globe have not changed for the better, thus barring them from reopening the Boteti situated BK11 mine.

Last modified on Monday, 14 October 2013 16:08

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