Firestone Diamonds, the AIM-quoted diamond mining and exploration company, on Friday announced that it has been selected by Namdeb Diamond Corporation as the preferred supplier for the Dredge and Floating Treatment Plant (FTP) project at Namdeb's diamond mining operations on the south west coast of Namibia.
Namdeb, a joint venture between the Namibian government and De Beers, is the world's 6th largest diamond producer by value.
The company said it and Namdeb were jointly completing feasibility for review and approval by Namdeb board, following which contract negotiations would be finalised.
The plant will have a capacity of 11.5 million tonnes per annum and 15 year minimum life and Firestone will construct the plant for Namdeb and operate on a toll treatment basis.
Production is targeted to commence in 2012.
Firestone Diamonds CEO Philip Kenny said this project followed its selection by Debswana in 2009 for a toll treatment tailings processing project at the Jwaneng Mine in Botswana.
Kenny added that the deal represented a further opportunity for the company to supplement cash flow from its own mining operations at BK11 in Botswana with cash flow from long term, low risk toll treatment projects. - I-Net Bridge