Aug 27, 2018

West Australian Government Invites Expression of Interest for Reopening of Ellendale Diamond Mine

The government of Western Australia has invited expressions of interest from companies interested in reopening the Ellendale Diamond Mine in the Kimbereley region of the state, best known for having produced some high quality fancy yellow diamonds before it’s then owner Kimberley Diamond Company was put under administration.

The mine, which has been abandoned since 2015 had produced almost 1.3 million carats’ worth of gem and industrial-quality diamonds, including about half of the world’s highly valued fancy yellow diamonds, with the being 18.5 carats, as per reports.

The government, through its Department of Mines, Industry Regulation and Safety (DMIRS) has been managing the site since 2015 under the abandoned mines programme ensuring that reopening at a later stage remained a viable option.

According to the DMIRS document, “At the time of abandonment, diamond-bearing materials remained, both previously mined and processed, or in situ. DMIRS considers that other operators may identify new technology, alternative marketing approaches or other ways in which the remaining diamond resources can be economically extracted. Two separate open cuts and plant areas exist, Ellendale 4 and Ellendale 9, located between 125 and 145km eastsoutheast of Derby.”

The DMIRS has posted tender details on its website. Interested parties are invited to register online, the shortlisted applicants will be taken on a site tour between September 17-21, 2018 and the last date for submission of tenders is November 30.

Applications will be evaluated by a panel of DMIRS experts before being presented to the Minister for Mines and Petroleum for consideration, and a final selection is expected by early 2019. The selected company will then have to formally apply for a mining lease, the department stated.

Pic caption: Ellendale Diamond Mine

Pic courtesy: DMIRS, Govt of W. Australia