Part 2: KPCSC wants Russia to help end impasse on new definition of conflict diamonds

In the first installment of this two-part exclusive interview with Shamiso Mtisi, the coordinator of the Kimberley Process Civil Society Coalition (KPCSC), we focused on illegal diamond mining in the continent and where the contraband ends up...

Today

Part 1: KPCSC gives insight into illegal diamond mining, trading in Africa

Although the diamond watchdog Kimberley Process (KP) prides itself for significantly reducing the flow of conflict goods since its establishment in 2003, the Kimberley Process Civil Society Coalition (KPCSC) alleged that illegal diamond...

18 october 2021

The jewelry industry in Russia needs to be upgraded in a serious way

Dina Nasyrova is a vice-president of the International Jewelry Exhibition-Congress J-1 recently hosted by the Atrium of Gostiny Dvor in Moscow. As a partner and the Muse of the famous jeweler Ilgiz Fazulzyanov, she actively participated in the preparation...

11 october 2021

Smiling Rocks, a philanthropic business model, inspires companies to work for betterment of the world

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27 september 2021

SA state diamond firm Alexkor trading recklessly, may go bust by June

28 may 2020

South African state-owned diamond mining company, Alexkor is trading “recklessly” and failing to meet its financial obligations, according to local media reports.
The miner’s administrator Lloyd McPatie said in a briefing to a Parliamentary Portfolio Committee on Public Enterprises that Alexkor was set to run out of cash by June, following a loss of R63.5-million ($3.6 million) in 2019. 

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Image credit: Alexkor


Alexkor’s core business is diamond mining around Alexander Bay and its non-core business includes residential and community services.
"It was not a going concern when I walked in, and it's still not a going concern," McPatie was quoted as saying by Fin24.
"The company is not a going concern. It can't generate cashflows."
McPatie proposed that a new recapitalised entity be established to own and manage the Alexander Bay mine.
The administrator said the Pooling and Sharing Joint Venture (PSJV) between Alexkor and the Richterveld Mining Company, which includes the Richtersveld community, was also technically insolvent and could not trade itself out of its current financial situation.
Alexkor owns 51% of the mine, in Richtersveld, in the Northern Cape while the remaining 49% was owned by the PSJV.
McPatie, who was appointed in mid-2019 to review the contract mining and revenue sharing models between the PSVJ and the contractors, said the entity only had one geologist, which was not normal for a mining operation.
He said PSJV should at least have a metallurgist, a surveyor and a mineral resource manager appointed as well.
The option of liquidation of the PSJV was proposed to government last January, but this was depended on the Communal Property Association being properly constituted, which McPatie said it was not.

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