A statement issued by Sydney-based mining company Kimberley Diamonds announced that its subsidiary, and operator of the Ellendale diamond mine, Kimberley Diamond Company (KDC), had entered voluntary administration.
Diamonds were first sourced from the Ellendale mine, located in the West Kimberley region of Western Australia, in November 1976, and the deposit has since become a renowned global source for fancy yellow diamonds. Tiffany & Co also has an exclusive offtake (future output) agreement with the Ellendale mine.
Diamonds were first sourced from the Ellendale mine, located in the West Kimberley region of Western Australia, in November 1976, and the deposit has since become a renowned global source for fancy yellow diamonds. Tiffany & Co also has an exclusive offtake (future output) agreement with the Ellendale mine.
“While KDC has seen strong processing results at Ellendale in recent months and has initiated a number of successful cost-cutting initiatives, KDC revenues have been negatively impacted by lower recovered grades and lower size distributions and, as a result, lower prices have been realised,” the statement explained.
It was also noted that the company’s failure to achieve forecast prices at a recent Antwerp auction had led to a “sharp, unexpected decline in the rough diamond market”, ultimately resulting in the decision that the business could no longer trade solvently.
Kimberley Diamonds declined Jeweller’s invitation to provide further comment on the impact that the mine’s suspended operations and potential closure might have on the diamond market, and specifically Tiffany.
The voluntary administration does not apply to, or affect, other Kimberley Diamonds subsidiaries, which hold interests in the Lerala Diamond Mine in Botswana and the Lomero-Poyatos gold exploration project in Spain.
Kimberley Diamonds purchased the Ellendale mine in 2013.
More reading