Botswana Diamonds Granted Mining Permit for Thorny River Project
Why we think this is neutral
The granting of the mining permit for Botswana Diamonds' Thorny River project is a positive development, as it allows the company to potentially commence mining operations once diamond prices recover. However, the RNS does not indicate any immediate financial impact, as mining has not yet started. The company's reliance on diamond price movements to restart operations at both Thorny River and Marsfontein is a concern, but overall the news is neutral in the current context.
Key Points
- Mining permit granted for Thorny River project in South Africa
- Two kimberlite blows identified as commercially viable at the right diamond price
- Marsfontein project previously put on care and maintenance due to falling diamond prices and permitting delays
- Potential to resume mining at Marsfontein and commence mining at Thorny River once diamond prices recover
Summary
Botswana Diamonds plc has been granted a Mining Permit for its Thorny River project in South Africa. The Thorny River project is located near the mined-out Marsfontein mine, and the company has undertaken extensive exploration work on the site. Two kimberlite blows (significant widening of the kimberlite dyke) were identified as commercially viable at the right diamond price.
Previously, BOD had used contractors to mine the nearby Marsfontein gravels and dumps as a "proof of concept", but this was put on care and maintenance in 2023 due to falling diamond prices and permitting delays. Now that the mining permit has been granted, BOD can look to commence mining at Thorny River once diamond prices recover.