Lonrho Mining to start Angolan kimberlite processing by July
March 10, 2010
Lonrho Mining said it will start processing the first of 40 kimberlite pipes at its Lulo diamond concession in Angola by July.
All the equipment for DMS a (Dense Media Separation) plant is expected to arrive at the site by the end of next month, with commissioning of the plant expected to start in May and June.
The firm previously intended to recover diamonds at the concession using two pan diamond recovery plants. However, following an inspection of the equipment by state-owned diamond firm Endiama, they were rejected for security reasons.
Once the DMS plant has been set up, a $1.5 million cash bond will be refunded. The company’s cash flow relies on the reimbursement taking place in a timely manner, Lonrho said.
“The company is very optimistic about the prospect of recovering diamonds this year, but time, proper and systematic work will tell,” Lonrho stated.
Lonrho owns a 39 percent stake in Lulo, while Endiama holds 51 percent with the remaining 10 percent owned by the Angolan government.
