New Partner for Sierra Leone Diamond Mine
February 20, 25
(IDEX Online) - Australian miner Newfield Resources is expected to bring in a partner to run its Tongo diamond deposit, in Sierra Leone.
It has agreed a term sheet (non-binding document) with ACA Resources, also based in Australia, to manage operations at the mine.
If, as expected, the deal goes through between now and June, ACA will take over all mining operations and charge the Newfield a fee per carat of diamonds produced
Both parties say they want to see the mine "as a sustainable long term producer of high quality diamonds in Sierra Leone".
Newfield took over the Tongo mine in March 2018 when it acquired London-based Stellar Diamonds for $23.6m.
Before that the mine was owned by Israeli Beny Steinmetz, through Koidu Holdings, in which he held a controlling stake.
In May 2022 the first diamond sales of 5,200 carats from the mine achieved an average sales price of $262 per carat.
Newfield say it has invested $80m in the mine and built 2km of underground infrastructure. It says the deposit has an initial eight-year life with peak annual diamond production of 260,000 carats forecast in Year 5.