The government of South Africa has stopped black-owned company New Diamond Corp. (NDC) from mining and prospecting at Schmidtsdrift, an alluvial diamond mine in the Northern Cape.
The Department of Minerals and Energy charges that NDC neglected mine health and safety standards at the mine. The government is taking a “zero tolerance” policy on health and safety oversights at mines in an effort to improve its reputation for having some of the world’s most dangerous mines.
The suspension followed an inspection that found a “serious lack of management” in the prospecting area, where environmental management and rehabilitation standards were lacking. According to a government statement: “Pollution control facilities at diesel storage tanks, oil storage facilities, workshops, washing bays and hazardous waste sites are non-existent.” The department says prospecting activities were in contravention of the environmental management program and that this is why operations were ceased.
The suspension will remain in place until an updated environmental program is approved.
NDC plans to become a 1-million-carat diamond producer by 2007, Schmidtsdrift was expected to yield 120,000 carats a year over a mine life of 17 years.
The 4-year-old NDC is a black economic empowerment partner of De Beers.
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