Sign In
Last checked at 
26 Jun 2008 07:00
ο»Ώ
26Β JuneΒ 2008
GEM DIAMONDS LIMITED
("Gem Diamonds" or the "Company")
FURTHER OPERATIONAL UPDATE ON CEMPAKA
Gem Diamonds is an 80% shareholder, in partnership with PT Aneka Tambang, a company controlled by the Government of Indonesia, in the Cempaka alluvial diamond mine. The Cempaka mine comprises two paleo channel systems, the Danau Seran and the Cempaka channels, both located in a low lying coastal swamp area of the South Kalimantan ProvinceΒ ofΒ Indonesia.Β
Subsequent toΒ issuesΒ raised by the regional Government of theΒ SouthΒ KalimantanΒ ProvinceΒ in April 2008Β with regard to the waste water discharge from CempakaΒ and in line with the Company's commitment to best practice environmental issues management,Β Gem DiamondsΒ elected to temporarily suspendΒ mining.
Extended discussions with the regional Government ensued and Gem Diamonds is pleased to announce that agreement on an appropriate water treatment process was reached. TheseΒ water treatment facilitiesΒ wereΒ dulyΒ constructedΒ atΒ a capital cost of US$0.1Β millionΒ andΒ trialsΒ thereon wereΒ conducted. AΒ site inspectionΒ has beenΒ conductedΒ byΒ theΒ Environmental Monitoring Group ofΒ South KalimantanΒ and permission has been granted to continue pumping discharge water from the mining areaΒ on a trial basis. The ongoing treatment of water through these facilities is not expected to materially increase mining costs at the Cempaka mine.
The updated environmentalΒ impact assessmentΒ andΒ managementΒ and monitoringΒ plansΒ forΒ theΒ mineΒ as well as the updated feasibility studyΒ haveΒ allΒ beenΒ submittedΒ to the relevant authoritiesΒ and areΒ currently underΒ review. MiningΒ willΒ recommence onceΒ all ofΒ these are approved, which is expected to be inΒ Q308.Β
Cempaka has operated as an alluvial mine since 2004, subsequent to being awarded a Contract of Work by the President in 1998 that runs for 35 years. It is the first commercial mine in the area,Β where artisanal mining has been ongoing forΒ hundreds ofΒ years.
A further update will be provided in due course.
For further information:
Gem Diamond Technical Services
Angela ParrΒ
Tel: +27 11 560 9600
Pelham PRΒ
Candice Sgroi
Tel: +44 207 743 6376
James Henderson
Tel: +44 207 743 6673
About Gem Diamonds
Gem Diamonds Limited (LSE: GEMD) is a global leading diamond producer that is pursuing an accelerated growth strategy through targeted acquisitions and the development of existing assets. Gem Diamonds portfolio comprises producing kimberlite, lamproite and alluvial mines, development projects and exploration assets. Operations are situated inΒ Angola,Β Australia,Β Botswana, theΒ Central African Republic, the Democratic Republic of Congo,Β LesothoΒ andΒ Indonesia. Gem Diamonds produces some of the world's most remarkable white diamonds from its LetΕ‘eng Mine and rare fancy yellow diamonds from its Ellendale Mine and an array of coloured diamonds from its Cempaka Mine.Β
Established in July 2005,Β Gem Diamonds listed on the main board of the London Stock Exchange in February 2007 raising US$635 million. It is currently capitalised at approximately US$1.1 billion and had US$184 million of cash on its balance sheet at 2007 year end.Β
For further information about Gem Diamonds visitΒ www.gemdiamonds.com.Β Β
Follow the stocks
