BlueRock Pauses Mining at Kareevlei

RAPAPORT... BlueRock Diamonds has paused operations at its Kareevlei mine in South Africa after receiving notification from the government about a possible safety breach.The Department of Mineral Resources and Energy (DMRE) visited Kareevlei last week and subsequently issued a notice under Section 54 of the Mine Health and Safety Act, BlueRock said Monday. That part of the law enables inspectors to call for the suspension of mine operations if they identify possible danger."Accordingly, operations at the mine have been stopped pending resolution of the issues identified by the DMRE," BlueRock noted. "The DMRE has visited the operation regularly, including during the company's current expansion project, with no previous suggestion of this outcome."Management is working closely with the authorities to resolve the situation and "hopes to restart processing in the near future," it said. BlueRock still expects to maintain its production guidance of 22,000 to 26,000 carats for the current calendar year, it added.Output at the mine rose 38% year on year to 7,682 carats in the third quarter, while sales jumped 81% to 6,887 carats. The company expects to achieve revenues of $8.8 million to $11.6 million this year, up from $3.6 million in 2020, it said last month.Image: The Kareevlei mine. (BlueRock Diamonds)