SouthernEra Suspends Mining Operations at the Klipspringer JV

SouthernEra Resources announced yesterday (Wednesday) that mining operations at the Klipspringer mine have been suspended. This decision, taken in conjunction with the miner’s joint venture partners, has become necessary, the company said in a statement, primarily as a result of the strengthening of the South African rand.

One of the joint venture partners is South African giant De Beers.

The joint venture’s operating costs are in rand, while diamond revenue is denominated in US dollars. Over the course of past year the rand has appreciated significantly relative to the US dollar resulting in the operation being unprofitable.

In agreement with the two representative unions, non-essential employees have been retrenched but remaining stockpiled ore will continue to be treated during January 2004 after which the mine will then be placed on care-and-maintenance.

SouthernEra Resources is an independent producer of platinum group metals and diamonds. The company also has an extensive PGM, gold and diamond exploration program.