Rockwell keeping costs in check
By: Liezel Hill
21st December 2009
TORONTO (miningweekly.com) – Vancouver-based Rockwell Diamonds has managed to keep operating costs at its South African mines below target, despite pressure from a stronger rand, the company said on Monday.
Cash operating costs have remained below the target range of $3/t to $3,50/t, Rockwell said in a report focusing on the three months ended November 30, which is the company's fiscal third quarter.
The diamond-miner operates three mines in South Africa, and is looking at restarting a fourth, Wouterspan, which was put on care-and-maintenance because of weak market conditions earlier this year.
"Over the past twelve months changes and enhancements to our operating procedures, plants, and business model, and focus on cost reductions, training to increase productivity, improved communication in tandem with efforts to emphasize safety and health in the workplace have led to increased production, reduced costs, and enhanced our excellent safety performance,” said CEO John Bristow.
“We continue to focus on ensuring that the company is operating at better than break-even point and is positioned to return to profit and grow as diamond prices improve.”
Rockwell said production in October, November and December was was slightly lower than the preceding months, because of heavy early summer rainfall, but expects output to improve in the drier mid-summer period and into the 2010 winter period.
Unlike last year, when the firm opted for an extended shut-down of operations during December and January in response to the very weak market for rough diamonds at the time, Rockwell plans to continue running its mines through most of the holiday period.
“Agreements between organised labour and management have facilitated a brief closure over the Christmas and New Year period thereby minimizing production decreases,” the company said.
At the shuttered Wouterspan mine, Rockwell has started planning, design drawing and costing of a project to modernise the operation's pan plant.
The company plans to implement a phased program to replace the existing 12-pan rotary pan plant with four to eight larger (18-foot) rotary pans, similar to the set-up at its Saxendrift plant.
Rockwell also reported on Monday it has received two awards for safety – the company was awarded first place in the Northern Cape Mine Managers Safety Competition, run by South Africa's Department of Minerals and Resources, while employee MacDonald Matabogi was awarded the gold medal and trophy for the best overall safety representative at the competition.
Edited by: Liezel Hill
