Gem Diamonds to Begin Polishing January 2009

Mining and exploration company Gem Diamonds is planning to begin polishing operations in January 2009, according to CEO Clifford Elphick. The operations, which will be carried out in facilities in Mauritius and Dubai, will process diamonds from its projects in Lesotho, Australia and Indonesia.

“We are out to have our factories by January of next year in a position to start beneficiating and producing polished stones,” Elphick said to Miningmx. “It is not a huge investment, but it has to justify its existence. We will not compete in the bottom half of the value curve, which is better served by industries in China and India,” he said.

The Letseng mine in Lesotho is famous for producing large and very valuable diamonds. Gem Diamonds’ Ellendale mine in Australia produces yellow gem-quality stones. A recent tender of four intense and vivid polished yellow diamonds from Ellendale fetched an average price of $28,860 per carat.

Elphick said at the time of the tender that “significant additional margin” can be made from selling their goods polished. “We are very encouraged by the results,” he added.