Gem Diamonds reports Indonesian mining ops
Monday, February 2 2009 - 10:41 AM WIB
INDONESIA
BDI Mining was acquired by Gem Diamonds in May 2007. It owns 80% of the Cempaka alluvial diamond mine in South Kalimantan, Indonesia in partnership with PT Aneka Tambang, a company controlled by the Government of Indonesia. The alluvial deposits at the Cempaka Mine are found in the Danau Seran and Cempaka paleochannels.
Small quantities of gold and platinum are present in the diamondiferous gravels in both channels and a precious metal concentrate is recovered as a by-product.
Development
Following a suspension of operations mining recommenced on 3rd September. On the resumption of operations every effort was made to accelerate the waste stripping and treat the exposed ore. In October, a Cempaka record of 8,087 carats was recovered in a single production month. In November the production plant suffered extensive downtime due to water supply pipes bursting after being weakened by corrosion during the suspension period.
A parcel of 10,962 carats was sent to Antwerp for sale by tender during November but (in the context of the world market and resulting depressed prices) failed to achieve the breakeven of US$271 per carat. The decision was therefore taken to place the operation onto care and maintenance and the appropriate authorities were informed. A total of 575 employees were retrenched as from the 31st December 2008. The mining fleet has been parked and the plant is in the process of being "moth-balled". A total of 67 people have been retained to oversee the maintenance of the site of which 48 are security and environmental personnel. The company is continuing with the environmental rehabilitation plan and the legal reporting during the care & maintenance period. (end of excerpt)
Production
| 4th Qtr 2007 | 4th Qtr 2008 | Full Year 2007 | Full Year 2008 | % Change | |
| Waste mined (tonnes) | 1,500,744 | 967,954 | 4,301,914 | 3,774,663 | -12% |
| Gravel processed (tonnes) | 367,316 | 346,123 | 721,769 | 986,089 | +36% |
| Carats Produced | 12,714. | 18,809 | 23,033 | 27,902 | +21% |
| Au/Pt concentrate produced (kg) | 7.5 | 7.8 | 16.8 | 13.7 | -18% |
Rough Diamond Sales
| 4th Qtr 2008 | Full Year 2007 | Full Year 2008 | % Change | |
| Carats sold | 10,958 | 10,410 | 32,748 | 215% |
| Total tender value (US$ millions) | 1.0 | 2.3 | 7.6 | 237% |
| Achieved US$/ct | US$89 | US$218 | US$233 | 7% |
| * Mining at the Cempaka Mine was suspended between April and September 2008 | ||||