Gem Diamonds restarts S. Kalimantan mining ops

London Stock Exchange-listed mining firm Gem Diamonds said on Tuesday that it has re-started mining operation at the Cempaka mine in South Kalimantan following an approval from the local provincial authorities.

?Approval to recommence mining was given by the government of the South Kalimantan province after the revised environmental impact assessment, environmental management plan and feasibility study were approved by local authorities as well as by the Central Mines Department in Jakarta. The approval is for an initial six month probationary period subject to certain environmental monitoring,? the company said in statement.

The local authorities have stated that the Cempaka mine currently provides proper water treatment facilities which are in accordance with prevailing regulations, it said.

The ongoing treatment of water through these facilities will not materially increase mining costs at the Cempaka mine.

In line with Gem Diamond's commitment to best practice environmental issues management, the company elected to temporarily suspend mining in April 2008 after issues with regards to waste water discharge were raised by the regional government of the South Kalimantan Province. In total mining was suspended for four months

Gem Diamonds has 80 percent share in Cempaka alluvial diamond mine in South Kalimantan, partnership with state-owned miner PT Aneka Tambang (Antam) which owns the remaining 20 percent.

The alluvial deposits at the Cempaka Mine consist of the Danau Seran and Cempaka paleochannels. The former was mined since the commencement of the operations in 2004 and is almost depleted. It was significantly smaller but of a higher grade than the Cempaka channel. (denny)