African Diamonds for 2011 output
Published 19/03/2010 | 05:00
AFRICAN Diamonds, the Dublin-based company which is digging for diamonds in Botswana, said it still plans to begin producing diamonds next year while diamond prices are high.
"The pace of development at AK6 (the mine) is accelerating," chairman John Teeling said yesterday as the firm unveiled its results.
"The mine will come on stream in 2011, within the cost parameters that we have previously set," Mr Teeling added.
The company, which is listed on London's AIM exchange, said that the diamonds in the mine were of a better quality, and more valuable, than previously thought.
"There is a high ratio of Type II diamonds in AK6. These are very rare -- maybe 2pc of all diamonds.
"They contain no nitrogen and tend to be large. They command very high prices.
"African Diamonds has reconfigured the treatment plant to allow for the recovery," the company said.
African Diamonds added that its operating loss shrank by a third to £223,000 (€250,000) in the six months to December compared to the same period a year earlier as the company's costs fell.