Canadian junior diamond mining company Diamcor has implemented short-term operational changes and cost reduction measures at its Krone-Endora at Venetia project close to Musina in the Limpopo Province of South Africa.   

Diamcor has put their Krone-Endora at Venetia project on care and maintenance as a result of stringent Covid-19 measures since the hard lockdown in March 2020. Iamge credit: Diamcor

Diamcor has put their Krone-Endora at Venetia project on care and maintenance as a result of stringent Covid-19 measures since the hard lockdown in March 2020. Iamge credit: Diamcor

The restrictions imposed on companies operating in South Africa at the start of the hard lockdown in March 2020 has severely affected operations at the mine. The project is now on temporary care and maintenance. The company said in a recent statement that it continues to reduce, defer, and minimise costs, including management and director compensation, where possible, during the lockdown period.

According to Dean Taylor, CEO at Diamcor, the company is working with its corporate bank, and the South African government, in an effort to secure COVID-19 relief funds, to support the project’s return to day-shift operations when possible.

Taylor announced that is recently completed the tender and sale of 2 427 carats, generating gross revenues of USD271 263, which resulted in an average price of USD111.87 per carat for the period. “We were pleased with the results of this tender given the higher dollar per carat was primarily associated with a higher percentage of larger, higher quality rough diamonds which were recovered just prior to the required shutdown of operations at the project,” says Taylor. “It was unfortunate timing, as the efforts undertaken by our new operational team were clearly demonstrating positive results, and our entire team is looking forward to resuming operations as soon as possible,” says Taylor.