WA Government clears the way for State's second diamond mine

21/12/01
State Development Minister Clive Brown said the way has been cleared for a second diamond mine in Western Australia, after the Government amended legislation to free the Ellendale mining lease for development.
The WA Parliament yesterday approved changes to the Diamond (Argyle Diamond Mines Joint Venture) Agreement Act 1981-1983, which means a lease area formerly held by owners of the Argyle diamond mine can now be handed over to Perth-based group, Kimberley Diamond Company.
Kimberley Diamond Company will now be able to proceed with plans to develop a diamond mine at Ellendale in the Kimberley region of WA, which may later be expanded to a bigger operation.
"WA is the world's biggest diamond producer," Mr Brown said.
"WA earned close to $90million in royalties in 2000 from the Argyle diamond mine. There is potential for income from diamond royalties to rise when a new operation is established by Kimberley Diamond Company."
Kimberley Diamonds is proposing a two-stage mining operation, the first of which would begin operating in mid-2002 and see around half a million tonnes of ore processed per year.
This would create around 50 full-time jobs for 20 months.
If the operation is successful and diamond reserves in the region are proven the company is considering increasing throughput at the mine with a $26million expansion.
The second stage of the operation would last for up to 10 years and create as many as 120 full-time jobs.
Minister's Office - 9222 9699