Lucapa Diamond to restart halted Merlin mine
The phased approach will begin with an 18-month initial phase focused on excavating and dredging five existing pits.
Firestone Diamonds said Wednesday rough diamond prices have fallen about 15% to 20% since the start of August as market uncertainty begin to take a heavier toll. This after prices rose roughly 40% in the first half on the back of robust demand from China and India.
The company announced it had sold only 14% of the rough diamonds offered at the tender – the London-listed firm’s fourth of the year – held in Gaborone, Botswana that concluded on September 9. Most of the unsold goods were smaller in size. Shares in the company dropped over 7% by the close of trade in London.
The AIM-listed company (LON:FDI) said the fundamentals remain positive, with demand from China and India and shortfall in supply expected to continue to support prices, and that it expects stability to return to the market later this year.
Reuters quotes Chief Executive Tim Wilkes: “Although demand for smaller diamonds has decreased, it has remained firm for larger, better quality diamonds, and we are confident that we will see increased demand for our full range of production later in 2011.”
