DiamondCorp shares rose by almost 6% on the announcement of the end of industrial action by AMCU members.
It was announced that the AMCU members had voted to resume work at 6.00 am today following a dispute in which management refused to employ two additional full-time salaried shop stewards.
The AMCU already has five shop stewards on the mine and is the majority union. The resumption of work takes place without the appointment of the two extra shop stewards.
Along with white diamonds of above average quality, historically Lace was known for its fancy pinks and purples, which had become a signature gem from this mine. While historically the bulk of Lace′s value curve has been in the 1 carat to 4 carat range, the pipe has produced a number of large stones, up to 122 carats. More than 80% of the diamonds are of gem quality.
A tarred road to Kroonstad and the north, services the mine at Lace; electricity to the mine is provided through the Eskom grid. In 2008, DiamondCorp built a 1.2 million tonne per annum diamond recovery plant that has the capacity to treat ore for the +25 year expected mine life. There is adequate water supply to operate at this rate.
Impact of industrial action to be assessed
The Company has stated that it will provide an update on the impact of the industrial action on the Lace mine development and operational schedule going forwards.