Firestone Delays Opening of Liqhobong Mine to Q4 2016
June 23, 15
(IDEX Online News) – Firestone Diamonds plc has announced that the launch of its Liqhobong Mine Development Project has been postponed from the end of the first half of 2016 to the fourth quarter of the year.
The company said construction of the project remains within the original $185.4 million budget and will be fully funded in the production ramp up. However, increased overburden and adverse weather conditions have increased the project costs by ZAR156 million ($12.8 million) due to increased overburden and adverse weather conditions.
"Despite adverse weather, increased overburden and the larger rocks encountered at site, the project continues to make good progress,” said Firestone CEO Stuart Brown.
“The costs of additional work crews and the acceleration of certain key areas adopted to meet the revised schedule through to production, now anticipated to be during Q4 2016, are all catered for within the project's original $185.4 million budget. We will continue to work to find other ways to accelerate work streams and improve on the revised completion schedule and will keep shareholders updated as we achieve these milestones.”
Firestone has managed to reduce some of the costs of construction through an agreement with Storm Mountain Diamonds, the owners of the Kao Mine in Lesotho, to utilise the power line alongside Firestone, and to contribute ZAR94.5 million ($7.75 million) of the revised total project costs.
The grid power project is ahead of schedule and is due to be complete in Q3 2015, with a net saving of ZAR70.5 million ($5.79 million).