The board of Africa-focused Gem Diamonds has given the go-ahead for an expansion of its Leteng mine in Lesotho.
'Project Kholo' will begin in January 2012, and will ramp up to full production by July 2014, the company said.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Carat output will increase to around 200,000 carats per annum, from 100,000 carats a year currently.
The total project capital expenditure for Project Kholo is estimated at $280m and will be funded out of existing and future cash flows, Gem said.
"[With] the expansion project at the Letseng mine, the number of carats of the remarkable diamonds which it produces will effectively be doubled," said chief executive Clifford Elphick.
"Given the industry consensus around the extremely positive supply/demand dynamics for high end diamonds, it is an investment which signals Gem Diamonds' confidence in its future growth," he added.
-
FCA car finance compensation: £700 each expected for 14 million driversEligible motorists could begin getting a payout from next year under the financial watchdog’s planned car finance compensation scheme
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
