Plans are in motion to restart mining at the Ellendale diamond mine, with Gibb River Diamonds accepting a state government offer to apply for new tenements at the Kimberley operation.
Mines and Petroleum Minister Bill Johnston today announced that Gibb River had accepted the tenements offer, and had also invited India Bore Diamond Holdings to apply for other tenements at the site.
The mine has been closed since 2015, after its previous operator, Kimberley Diamonds, was placed into administration.
Ellendale produced around 1.3 million carats of gem and industrial-quality diamonds from 2002 to 2015, including around half of the world’s Fancy Yellow diamonds.
Mr Johnston said the companies would have to undertake more exploration before mining activities would commence, as well as develop new mining plans for approval and consult with key stakeholders.
“It’s not going to happen overnight, but restarting mining operations at the former Ellendale mine will be a high point in the rejuvenation of diamond exploration and mining in the Kimberley,” Mr Johnston said in a statement.
“It has taken 12 months to get to this point, but the state government’s tendering process is highly confidential and very thorough, so it is pleasing to have the EOI process wrapped up.”
Gibb River Diamonds also announced this week it had made progress towards development of its Blina diamond project, also located in the Kimberley’s Ellendale Diamond Province.
Gibb River told the ASX that Ron Brierley was no longer a shareholder of the company.
Sir Ron had attempted a hostile takeover of the company in 2015, which was unsuccessful.
He had held more than 14 million shares in the company this week, an interest which the company said impacted its ability to finance the Blina project.
“The exit of Sir Ron Brierley and related entities from GIB is an excellent outcome for our shareholders and one which will enhance our ability to more effectively promote the Blina diamond project through either a strategic partner or financing via joint venture,” Gibb River chairman Jim Richards said in a statement to the ASX.
Gibb River shares last traded at 2.7 cents, prior to entering a trading halt this morning.
