Debswana to re-open some mines
April 15, 2009
Johannesburg - Diamond production will be resumed on Wednesday at Orapa, Letlhakane and Jwaneng mines, Debswana, the world's largest diamond producer by value, said on Tuesday.
These mines had been closed since December last year "in the light of reduced demand for rough diamonds," said the company, a joint venture between the government of Botswana and De Beers.
However, production at the fourth and smallest mine, Damtshaa, and at Orapa No. 2 plant would remain suspended for the rest of the year.
"The primary purpose of the production suspension was to protect the company's cash position by reducing production costs, thereby preserving jobs," Debswana said.
During the suspension, the company sold off some of the diamonds that had filled its inventories.
The company also carried out maintenance during the mine closures.
"Debswana realised substantial savings from the two shut-downs in December-January and February-April which made much-needed contributions to the company's bottom line."
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