Unexpectedly difficult mining conditions, combined with an extended port call, hindered
The ocean miner cranked out about 100,000 carats, or 48% less than it did in the first half of the previous year. Much of the shortfall occurred in the second quarter, when only 52,000 carats were mined.
During that 3-month period, the company’s NamSSol mining system encountered abundant clay, causing tracking difficulties and thus reducing mining rates. The machine has since been relocated to better, albeit lower-grade, areas, leaving the difficult spots for the more advanced Nam 2 system, scheduled to begin operating in 2001.
Output was also hindered by a longer-than-expected port call for upgrades to the MV Namibian Gem (which has since returned to sea) and the decommissioning of the MV Oceandia.
Namibian now expects to produce between 225,000 and 250,000 carats by year-end, significantly less than the 273,700 carats recorded for 1999. However, the lower output will be offset by higher realized prices for production in the first half — US$184 per carat against an expected US$155 and an 1999 average of US$151.
Full financial results are expected in the coming weeks.
On a brighter note, Nam 2’s support vessel, the MV Ya Toivo, has arrived in Cape Town and is being installed with a 100-ton-per-hour processing plant in preparation for its commissioning in the fourth quarter. The plant is double the size of the one used by NamSSol’s support vessel.
At 8,000 tonnes, MV Ya Toivo is the largest mining vessel to be deployed off the coast of Namibia.
Meanwhile, Namibian has begun sampling Mining Licence 36, which was acquired through the takeover of South African-based Ocean Diamond Mining. The program is being carried out by a new 47-ton drilling tool that combines conventional offshore drilling techniques with NamSSol technology.
To support the rig, the MV Zacharias has been re-fitted with a helicopter deck, a processing plant capable of treating 10 tons per hour and a complete launch and recovery system. The entire exploration system is designed to operate in a variety of weather conditions and oceanic terrain at a significantly lower cost than that incurred by the machine used previously.
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