Onalenna Modikwa
8 July 2009
Selebi-Phikwe — Diamonex Mine's judicial manager, John Stevens has said that the High Court has not yet made a ruling on the liquidation of the Lerala diamond mine.
Stevens said on Monday that there was a hearing at the High Court recently seeking to put the mine under liquidation but they are still waiting for a ruling. Diamonex mine has never made profits since it started operating as a result of disappointing results from its first sales. It's opening coincided with the world economic crunch and the company was left with no choice but to seek permission to be put under judicial management from the High Court. Currently, the mine is not operating.
Stevens said he hopes the mine will recover when the diamond prices improve. He said the judicial management order for the mine was for one-year ending on February 2010.
He added that P280 million was used to set up the mine. He said the investment will be recovered if the mine is operating fully and making profits. "In the future, obviously we will recover that money," he said.
He explained that the machinery is still at the mine site and a security company has been deployed to safeguard them. "Nothing is happening at the mine. All the diamonds that were previously mined have been sold."
Stevens said all the 160 employees were paid up to January this year. But severance, leave and notice pays are still outstanding. He is hopeful that if operation starts again, the company will try to re-hire its employees but if they have secured employment elsewhere, they may not be recalled.
Minerals, Energy and Water Resources Minister Ponatshego Kedikilwe has said the government assisted Diamonex mine to secure a loan of P10 million from a local commercial bank. The government holds the mine's diamonds as security. "We have made arrangements for the loan to be paid back because we have made a guarantee and the government will sell the diamonds to recover the money," he explained.
The minister said that in the meantime, they facilitated for Flemming and African Alliance Fund Managers to assist Diamonex to ultimately get back on its feet. He added that they are still negotiating with an international bank that had financed Diamonex mine to accept the proposal by the fund managers to avoid liquidation. He hopes that the mine will start operations again.
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