De Beers Begins Construction of New SA Diamond Mine
October 24, 06
De Beers is to start construction of the Voorspoed diamond mine near Kroonstad, South Africa. The mine and the recovery plant will be built at a cost of R1,200 million ($172 million).
During the ground breaking ceremony, managing director of De Beers South Africa, David Noko, said Voorspoed will be an open pit mine with an estimated life of 12 to16 years, expected to produce eight to ten million carats during its life time.
The mine is creating 700 new jobs during the construction stage and up to 400 jobs as the mine reaches full production in the second quarter of 2009.
This is the second run for Voorspoed. The deposit was mined from 1906 to 1912 by the Voorspoed Diamond Mining Company (VDMC). Approximately 4.2 million tons were mined, producing 950,000 carats. VDMC experienced difficulties in mining the hard kimberlite and the mine was closed. De Beers acquired the mine from VDMC in 1912 and due to the marginal nature of the deposit and the technology then available the mine has not operated since that time.
Voorspoed was known as a producer of occasional large and exotic color diamonds.
This is the first new mine for DBCM as a Black Empowerment company.