DFI Joins Widening Mining Suspensions
December 21, 08Diamond Fields International Ltd. on Friday announced it has suspended the operations of it diamond mining vessel the mv DF Discoverer until further notice. DFI’s board of directors decided to do so “based on the severity of the global economic downturn and the sudden drop in the price of rough diamonds.”
DFI’s decision joins most major and junior diamond miners that were hit by current economic situation. De Beers, Rio Tinto, Gem Diamonds and Petra have made similar decisions in the past weeks.
Mining is an expensive operation. Without the constant cash flow generated by rough diamond sales, many miners prefer to cut costs by halting or limiting mining and exploration operations.
DFI said that beginning in early January it will be moving forward “aggressively” with drilling its Liberia gold discovery.