On July 1, the South African miner withdrew its MV Namakwa airlift mining vessel from the Marshall Fork marine diamond deposit, only to end the joint venture a few days later. Marshall Fork is one of two geological features found off the coast of Namibia that the company had agreed in March 2001 to mine over seven years in return for half the proceeds.
According to Diamond Fields, the cancellation reflects an unresolved dispute over recovery rates for which Trans Hex was financially liable. Trans Hex considered its decision proper, citing past complaints and unexpectedly difficult mining and geological conditions.
Before weighing anchor, Trans Hex had recovered 27,000 carats, including a rare 17-carat stone. Most were recovered in the final six months of the partnership, when production still remained well shy of the expected monthly quota of 8,035 carats.
The suit challenges Trans Hex’s repudiation of the agreement and its breach of an obligation to sell the MV Namakwa to Diamond Fields. The junior has since bought another smaller ship but will need several months to convert it to an airlift mining vessel before production can be resumed (T.N.M., Sept. 9/02).
A 2000 independent feasibility study put Marshall Fork’s indicated and inferred resource at 1.99 million cubic metres grading 0.29 carat per cubic metre. Diaz Reef, a portion of which represents the second area that Trans Hex was to have mined, hosts 4.12 million cubic metres averaging 0.13 carat.
The resource calculations are based on sampling programs carried out by BHP and De Beers Marine. Each estimate assumes a cutoff grade of 0.15 carat per sq. metre, a diamond price of US$175 per carat, and overburden.
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