Release: Gem Diamonds to place the Cempaka mine on care & maintenance
Monday, December 15 2008 - 08:03 AM WIB
(15 December 2008)--Gem Diamonds Ltd (LSE:GEMD) released its Operational Update and Trading Statement on 17th November in which the company indicated that it was reviewing the situation at the Cempaka mine in Indonesia which could lead to the low margin operation being placed on care and maintenance.
The review has now been completed. Gem Diamonds has decided that due to the impact of the declining price of Cempaka's rough diamonds since the onset of the global economic recession and in line with the company's strategy to focus on cash flow generation, the Cempaka mine will be placed on care and maintenance from 1st January 2009.
Gem Diamonds has informed the relevant Indonesian government authorities and agencies about the decision. (end of release)