Randgold Mulls Setting Up SA Diamond Manufacturing Plants
June 23, 04
Randgold & Exploration is considering setting up a diamond cutting and polishing plant in South Africa as it expands its diamond interests in Angola.
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A decision has not yet been made but the company is aiming to reach one within a couple of months, Buiten Dag, Financial Director of Randgold and JCI, told IDEX Online.
“There is a good chance that it will be approved and the factory set up,” Dag said. “It would be good to establish a diamond center in Cape Town, mobilizing the production from Namibia, Botswana, Angola and South Africa, instead of the diamonds being sent to Europe.”
The factories would handle production from Randgold's Angolan operations and the Letseng mine in Lesotho, he said.
Dag said the company would be investing between 20 million to 40 million rand ($3-$6 million) to establish the diamond-polishing and cutting center.
The firm believes the financial benefit would come from the significant value that could be added to the stones before they were exported.
Randgold said yesterday (Tuesday) that it had acquired several new diamond assets and mining licenses in Angola and Dag confirmed that the new Angolan projects would be producing 200,000 carats annually within a year.