Alexkor Turns A Corner, Will It Turn The Next?
August 25, 03
State-owned diamond miner Alexkor made a complete, and promising, financial turnaround after five years of consecutive losses totaling R197 million ($26.39 million), reporting a 163 percent surge in headline earnings to R45.4 million ($6.08 million) for the January to June period compared to R17.7 million ($2.37 million) during the same period last year.
Income from diamond production rose to $35.53 million. Alexkor’s board expressed optimism for the future and company CEO Dalikhaya Zihlangu, added that the focus in the coming year would be on improving recoveries from the company's land operations.
However the question still looms over a privatization drive. The South African government planned to sell 51 percent of the company, plans that were thwarted by a land claim by the Richtersveld community for mineral rights over most of the West Coast land, restitution of the land and compensation since 1928.
The sides are in negotiations for an out of court settlement as the legal proceedings are advancing.
Alexkor desperately needs a partner that can invest in the company such as local empowerment consortiums Dimeng Diamond Holding, Pan African Gems and the New Alexkor Consortium that have voiced interest in the company.
The company plans to spend $4 million on exploration efforts and upgrade of metallurgical plants in an effort to expand and improve diamond extraction.