KIMBERLEY DIAMOND COMPANY NL
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Kimberley Diamond Company NL is a public quoted company engaged in mining, processing, marketing as well as exploration of diamond. The company was incorporated in 1993. Kimberley Diamond has registered business office based in West Perth, Australia.
The company’s business focuses on project evaluation and development on mining and exploration of diamond. It completed the construction and ramp-up of the Ellendale operation which produces gem and near-gem quality diamonds, the second highest price per carat of hard rock diamond mine. The company’s mining and processing operation was commissioned to treat millions of tons of ore per annum through lamproite pipes and a number of diamondiferous alluvial channels. The company holds the signature stone which is known as the rare and highly valuable Fancy Yellow Diamond.
Kimberley Diamond Company is one of the members of Greenhouse Challenge Plus, an organization which allows the Australian companies to work in partnerships with the Australian Government.
The principal activities of the Company consisted of diamond exploration, project evaluation and development, and diamond mining.
Description and history
Kimberley Diamond Company has a unique history in the international diamond industry. It is one of a select group of growing producers and one of the few companies to have successfully completed the transition from diamond explorer to operating mining company.
Kimberley was founded in 1993 and listed on the Australian Stock Exchange in January 4, 1994 after raising A$5.6 million. Its public share offer was underwritten by NM Rothschild & Sons – making it only the second diamond company to be backed by the merchant bank since De Beers Consolidated Mines Ltd in the 1880s.
Kimberley’s key asset on the listing was an 80% interest in the Blina Diamonds Project, located in the lamproitic-rich Ellendale region of the West Kimberley, some 100 km east of the coastal town Derby (2,000 km north of Perth).
In 1994, Kimberley discovered a buried palaeo-drainage system in the northern section of the Blina tenements and commenced a major exploration program. The paleao-channels are part of an ancient river system which, in the geological past, is thought to have transported diamonds eroded from the tops of their primary source – lamproite pipes.
Thus began and epic exploration campaign as Kimberley painstakingly tracked the buried river gravels system upstream – trenching, drilling and sampling to pursue its elusive quarry.
Originally believing that the paleao-channels on the Blina ground had drained the known diamondiferous pipes of the nearby Ellendale Field, over time Kimberley gathered more and more evidence that the Blina diamonds may in fact have come from another, nearer source.
As it pursued the Blina alluvials, Kimberley was also engaged behind the scenes in an acquisition program targeting the Ellendale Field itself, which had lain undeveloped since its discovery in the early 1970s.
Kimberley reached agreement to purchase the Ellendale Project during 2001 for a total of A$23.25 million in a series of staged payments and subsequently completed a feasibility study on the Stage 1 development of the Field.
After final funding was secured, along with all government and regulatory approvals, Kimberley commenced mining at Ellendale in May 2002 and by mid-year had officially launched Australia’s second kimberlite diamond mine.
Up to May 2004, some $95 million had been invested in the exploration, development and infrastructure at the Ellendale Project – with Kimberley now well established as a profitable, debt-free and growing mid-tier diamond producer.
Over 100,000 carats of gem quality diamonds were produced at Ellendale from start-up in mid-2002 through until 30 June 2004 from Ellendale Pipe 9, with production expanding to a forecast level of close to 200,000 carats for 2004/05 with the commissioning of expanded diamond production facilities in mid-2004.
The new 2.2 million tonne per annum diamond production plant at Ellendale 9 is expected to be the precursor to an even more significant expansion of the Ellendale operations with a Feasibility Study underway on the development of Ellendale Pipe 4, 15 km to the south.
The establishment of a second mining and production centre at Pipe 4 will underpin a further increase in production to well over 500,000 carats per annum in the next 2-3 years, cementing Kimberley’s position as a leading independent diamond producer.
The ordinary shares (KDO) also listed on Alternative Investment Market under London Stock Exchange.
On January 29, 2008, the Company was delisted from ASX following the completion of an off-market takeover of the Company’s securities by Gem Diamonds Australia Pty Ltd.
Engaged in mining, processing, marketing as well as exploration of diamond
BLINA DIAMONDS NL
US SIC Code
12, Walker Avenue
City province or state postal code
6005, WEST PERTH, WA
Phone: +61 8 9321 5887
Fax: +61 8 9321 5884
Country address: AUSTRALIA
Website url: www.kimberleydiamondco.com.au