Vladimir Zboykov: New times have come for jewelers

How a personal collection of minerals was thrown on the scrap-heap, who is behind the destruction of gemstone consumption culture in Russia and why jewelers will soon have to choose between business and prison – all this was told to Rough & Polished...

Yesterday

Changing preconceptions in the diamond and financial markets

Eli Avidar is a man on the move…literally. In April, the former Israeli diplomat stepped away from the CEO’s office at the Israel Diamond Exchange, a position he had held for more than two years, and from the Israel Diamond Institute, where he had been...

13 august 2018

Chasing a dream…

Elina Chan, MD of Shenzhen Shi Qing Yu Zhubao Ltd completed her higher education from Xiamen University and Master’s degree from Hong Kong University. To achieve her dream to start a business, Elina gave up numerous job opportunities in Hong Kong and...

06 august 2018

Pangolin Diamonds using termites to find kimberlite indicators in Botswana

It is not a secret that the rate of kimberlite discovery in Botswana has dropped considerably and research has shown that termites can help diamond explorers have an understanding of the transport mechanism of kimberlite indicator minerals from the kimberlite...

30 july 2018

In another fifty years, we’ll have a different scale of valuation, and all those items of natural origin – including diamonds – will sharply increase in price

Within the framework of the Qatar-Russia 2018 Year of Culture, the World Diamond Museum hosts an exhibition of the Qatar Museums at the State Historical Museum in Moscow – "Pearls: Treasures of the Seas and the Rivers," that opened on 11 July...

24 july 2018

BSGR resumes diamond mining at Koidu, but not yet out of the woods

18 may 2018
BSG Resources, which is controlled by billionaire Beny Steinmetz’s family trust, has resumed diamond mining at the Koidu mine in Sierra Leone.

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Image credit: BSGR


Operations at the mine had been halted for about a year following the Ebola epidemic, which left it in a huge debt.
Bloomberg reports that BSGR had in the past year worked to bring the mine back to productivity as it had spent about $50 million to extend the life of the mine by converting it from an open pit to underground operation.
The site was now expected to produce about 400,000 carats a year with a potential of lifting that to 650,000 carats.
“We’ve injected additional resources. That was tough, that’s why we fell behind with creditors,” an adviser to Steinmetz, Dag Cramer, was quoted as saying.
“This is the type of mining operation where you have to take the long-term view.”
Diamonds from the mine sell for an average of about $300 a carat, according to Bloomberg.
Meanwhile, Cramer said BSGR was still “not out of the woods” as there was need to increase production by expanding the operation and also pay back its debts, which are more than $100 million.
“We’re trying to run this operation, meet all obligations, and make a return to equity holders. There is a new owner of the debt and they want to generate a profit. At the same time, they must appreciate that the equity owners also have skin in the game," he said.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished