Debswana Extends Damtshaa Mine Closure

30 November 2009 (Last Updated November 30th, 2009 18:30)

Debswana will prolong the closure of the Damtshaa diamond mine until the end of next year because of uncertainty in the sector. Debswana MD Blackie Marole said the company agreed to prolong the closure because what it produces from other mines is more than the market demands as a result

Debswana will prolong the closure of the Damtshaa diamond mine until the end of next year because of uncertainty in the sector.

Debswana MD Blackie Marole said the company agreed to prolong the closure because what it produces from other mines is more than the market demands as a result of the global credit crisis.

"The board felt that we should save millions by keeping it closed until the end of 2010 but ramp up production at other mines which are cheaper to run than Damtshaa," Marole said.

The company said in April the Damtshaa mine would only remain shut down for the rest of the year.