Diamantaires at some level of the world are a step nearer to having a new supply of colored diamonds in Western Australia’s Kimberley do, with two companies in the mosey to revive a mothballed mine which once produced half the world’s supply of “fancy yellows”.
- Two mining companies order they are discontinuance to restarting diamond manufacturing at Ellendale
- The shuttered mine once produced half the world’s supply of fancy yellow diamonds
- Since the closure of Argyle, there are no diamond mines operational in Australia
Since the closure of the iconic Argyle diamond mine closing November, one among the few identified sources of crimson diamonds, all eyes luxuriate in been on the nearby shuttered Ellendale mission, 100 kilometres east of Derby.
Australian company India Bore Diamond Holdings become one among two companies awarded tenements at Ellendale by the West Australian govt in leisurely 2019.
Fully closing three hundred and sixty five days the company revealed it had unearthed a mountainous alluvial deposit of rare diamonds, which they sent to Antwerp for valuation.
Following the completion of a Heritage Impact Analysis look with former owners closing month, it has paved the capability for the express govt to grant reputation of the begin of minute-scale commercial mining in the coming weeks.
Managing director Peter McNally stated if the company successfully restarted manufacturing, it would be Australia’s first operational diamond mine since Argyle’s closure closing three hundred and sixty five days.
“We have obtained a moderately intensive gravel channel there to mine and in a few weeks’ time shall we nonetheless luxuriate in approval to originate commercial mining where these beautiful diamonds are.
“I’m slightly confident that this would possibly well well well be current, and we hope to be mining in September.”
Bringing fancy yellows to the world
The junior minor is targeting an customary, buried river system, identified as the L-Channel, that formed some 22 million years in the past and is estimated to believe at the very least 1.3 million carats of gem-quality diamonds.
Mr McNally stated Ellendale yellows had been successfully-favored by Australian customers previously, and world producers love Tiffany & Co jewellery had brought the product to a world market.
“They’re no longer as rare as the pinks, the reds or the blues [but] the yellow diamonds are doubtlessly nonetheless the most well-liked of the coloured diamonds,” he stated.
Usually, fancy yellow diamonds are valued at two to four events the ticket of a white diamond of a equal size and quality.
Mr McNally stated he become impressed by the results of an self reliant seek for of the diamonds recovered closing three hundred and sixty five days, which revealed many of the stones displayed a crimson fluorescence beneath ultraviolet gentle.
The ongoing seek for, by Perth-essentially essentially based Delta Diamond Laboratory, is taking a gape at the relationship between their fluorescence and the origins of the Ellendale signature yellow color, which can well well presumably befriend them add ticket to the product.
The mosey is on to restart Ellendale
India Bore Diamond Holdings is no longer by myself in its ambition to mine and market these magnificent fancy yellow diamonds to the world.
Fully months after a deal to abolish allotment of the weak Ellendale diamond mission, a newly formed Perth-essentially essentially based company also announced it planned to begin commercial mining next three hundred and sixty five days.
Earlier this three hundred and sixty five days, Burgundy Diamond Mines signed a multi-million-greenback take care of Gibb River Diamonds to abolish its tenements around the mothballed mine.
The acquisition included the adjacent Blina diamond mission, north-east of Ellendale, which is already absolutely accredited and ready for trial mining to begin.
Managing director Peter Ravenscroft stated they luxuriate in been in the route of of constructing a bulk sampling plant and he become confident they would be in manufacturing by the fourth quarter of 2022.
“We’re no longer going to safe back to the same levels of manufacturing because it become before — we’re stepping into smaller and more cellular,” he stated.
“However there’s a very welcome market there looking ahead to them.
“And we can be taking a gape at rebranding them, doubtlessly even altering the identify of the Ellendale diamonds and taking them to market ourselves.”
Is yellow the new crimson?
The historic Rio Tinto govt stated he hoped to be in a situation to replicate the success of the Argyle Purple Diamonds ticket and bewitch a likelihood left by the closure of the East Kimberley mine.
“I would possibly well well presumably abominate to be accused of copying Argyle Purple diamonds, but there’s indubitably a template,” he stated.
“Argyle luxuriate in been in a situation to attain that with a order quantity of crimson diamonds and we’re going to attain the same.”
A restart of Ellendale would ticket a new chapter in the mine’s chequered history and signify a new beginning for the Kimberley diamond industry.
Old operator Kimberley Diamond Firm went into administration in 2015, relinquishing its rent and environmental liabilities — reportedly up to $40 million — back to the express govt.
The WA govt has spent about $230,000 on rehabilitating the Ellendale mining rent and making it ready for new operations.
New chapter for Kimberley diamond industry
Mr Ravenscroft stated no topic the mine’s previous, he become confident Ellendale become going to be a success, with a healthy steadiness sheet behind the company after raising $50 million capital this month.
“Since the closing quarter of 2020, costs luxuriate in been on the rise and the fundamentals of the diamond industry are such that there is a shortfall in supply forecast over the next 10 years or so.
“I agree with we’re starting to gape order accelerating in other countries as successfully … and we’re chuffed to be a allotment of it.”
Meanwhile, a historic Kimberley explorer with mining interests in Angola and Lesotho is making an are trying to restart a diamond mine in the Northern Territory.
In Can also impartial, Lucapa Diamonds struck a deal to compile Merlin for $8.5 million, with hopes of filling the gap left by the closure of the once-in-a-abilities Argyle diamond mine.
The far-off mine, 720km south-east of Darwin, holds the file for producing Australia’s largest tough diamond but has no longer been commercially operational on any most fundamental scale since 2003.
Lucapa plans to begin manufacturing within two years and is likely to make use of “a few hundred of us” when in chunky operation.