Gem Diamonds Di Regulatory News (GEMD)

11 Apr 2008 09:59

Gem Diamonds Limited11 April 2008 11th April 2008 GEM DIAMONDS LIMITED ("Gem Diamonds" or the "Company") OPERATIONAL UPDATE ON CEMPAKA Gem Diamonds is an 80% shareholder, in partnership with PT Aneka Tambang, acompany controlled by the Government of Indonesia, in the Cempaka alluvialdiamond mine. Cempaka is located in a low lying coastal swamp area of the SouthKalimantan Province in Indonesia. Gem Diamonds has temporarily suspended mining to investigate various concernsrecently raised by the regional Government of the South Kalimantan Province on anumber of environmental matters. The Company's' own environmental consultantshave advised that they believe these concerns to be without merit. However, inline with the Company's commitment to best practice environmental issuesmanagement, a thorough investigation by both independent environmentalconsultants from the University of Lambung Mangkurat as well as the ProvincialEnvironmental Monitoring Group for South Kalimantan has commenced. Mining is expected to resume following these investigations and findings fromboth Provincial authorities and independent consultants. Whilst the duration of the suspension cannot presently be determined, it is notanticipated to have a material impact on the financial performance of theCompany, given Cempaka's relatively minor contribution to the forecastconsolidated results for 2008. Cempaka has operated as an alluvial mine in partnership with the Government ofIndonesia since 2004, subsequent to being awarded a Contract of Work by thePresident in 1998 that runs for 35 years. It is the first commercial mine inthe area where artisanal mining has been ongoing for over 1 000 years. A further update will be provided in due course. For further information: Gem Diamond Technical ServicesAngela ParrTel: +27 11 560 9600 Pelham PRJames HendersonTel: +44 207 743 6673 Charles VivianTel: +44 207 743 6672 About Gem Diamonds Gem Diamonds Limited (LSE: GEMD) is a global leading diamond producer that ispursuing an accelerated growth strategy through targeted acquisitions and thedevelopment of existing assets. Gem Diamonds portfolio comprises producingkimberlite, lamproite and alluvial mines, development projects and explorationassets. Operations are situated in Angola, Australia, Botswana, the CentralAfrican Republic, the Democratic Republic of Congo, Lesotho and Indonesia. GemDiamonds produces some of the world's most remarkable white diamonds from itsLetseng Mine and rare fancy yellow diamonds from its Ellendale Mine and an arrayof coloured diamonds from its Cempaka Mine. Established in July 2005, Gem Diamonds listed on the main board of the LondonStock Exchange in February 2007 raising US$635 million. It is currentlycapitalised at approximately US$1.1 billion and had US$175 million of cash onits balance sheet at 2007 year end. For further information about Gem Diamonds visit www.gemdiamonds.com. This information is provided by RNS The company news service from the London Stock Exchange