Home » Breaking News DIAMONDS Dwyka-linked firm participates in bid for Kimberley dumps
Published: 31 May 07 - 16:04 Aim- and ASX-listed Dwyka Diamonds on Thursday announced that it had submitted a joint bid to buy the diamond-bearing dumps in Kimberley, in South Africa’s Northern Cape province, being disposed of as part of the restructuring of De Beers’ South African unit, DBCM.
Currently, DBCM has a contract with Dwyka-linked empowerment company Superkolong, which is paid for toll treating some of its Kimberley tailings. Superkolong is 70%-owned by Dwyka’s and 30%-owned by Kolong Investment Holdings, a black economic empowerment company.
Dwyka said in a statement that owing to the fact that recently recovered grades had been lower than expected, DBCM had notified Superkolong of its intention to sell the dumps, which supplied feed to the Superkolong plant. But it has invited Superkolong, together with other similar operators on the dumps, to submit a tender to purchase the dumps.
A joint bid to purchase the dumps had subsequently been submitted to De Beers and the outcome of this bid was expected soon.
As an interim arrangement, De Beers had implemented certain amendments to the existing contract, including the removal of the initial contract-supply limit on Superkolong of 50 000 t/m.
Further, DBCM had committed to supply Superkolong with as many tons of tailings feed material as the plant was able to process in a particular month, while Superkolong would now bear all operating costs, including ore reclamation and delivery.
The revised contractual terms take immediate effect and would operate for the period during which the purchase of the dumps was being negotiated.
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