Newfield Resources plans to partner with ACA Resources to manage Sierra Leone’s Tongo diamond mine, pending the finalization of a non-binding term sheet. The deal aims to make the mine a sustainable diamond producer, building on Newfield’s previous investments. A projected peak production of 260,000 carats is anticipated by Year 5.
Australian mining company Newfield Resources is poised to partner with ACA Resources to manage its Tongo diamond deposit in Sierra Leone. A non-binding term sheet has been agreed, which, if finalized by June, will see ACA assume all mining operations. Newfield will pay ACA a fee per carat produced, with a mutual goal of establishing the mine as a long-term, sustainable source of high-quality diamonds.
Newfield acquired the Tongo mine in March 2018 through the purchase of Stellar Diamonds for $23.6 million. Prior to this acquisition, the mine was controlled by Israeli businessman Beny Steinmetz via Koidu Holdings. In May 2022, the mine’s first sales recorded 5,200 carats with an average price of $262 per carat.
Since taking over, Newfield has invested approximately $80 million into the Tongo mine and developed 2 kilometers of underground infrastructure. The mine’s forecast includes an initial operational life of eight years, with peak production expected to reach 260,000 carats annually by Year 5.
In summary, Newfield Resources is set to collaborate with ACA Resources to enhance the operational efficiency of the Tongo diamond mine in Sierra Leone. With substantial investments and infrastructure already in place, both companies are committed to establishing a sustainably productive diamond mine. The partnership aims to initiate a fee-based operational model while aiming for high-quality diamond production.
Original Source: www.idexonline.com
