Kimberley Diamonds places last diamond mine into administration

Australian miner Kimberley Diamonds (KDL) has placed its last remaining diamond mine into administration.

Following a vote, the company has closed its Lerala operation in Botswana, placing the mine into judiciary management.

Lerala had already been forced to suspend operations at its Lerala diamond mine due to delays in sourcing the funding required to continue its operations.

As previously announced to the market, Lerala has experienced a number of issues with the operation of the recommissioned diamond processing plant.

The mine had been in the process of implementing a performance improvement plan, which endeavoured to address the key issues affecting the plant.

“The successful completion of this performance improvement plant required further funds to be provided by investors,” a KDL spokesperson said.

“Despite considerable progress being made on implementing these improvements, all of the required funds have not been forthcoming.

“KDL has been in discussions with investors regarding further funds for some time, however to date no agreement for further and sufficient funding has been reached and KDL has been forced to cease providing financial support to Lerala.”

The judiciary management does not apply to KDL, whose management remain in discussions with its investors for further funding and is exploring corporate restructuring options.

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