New owner targeted for Ellendale

PERTH (miningweekly.com) – The Western Australian government is looking for a miner to reopen the Ellendale diamond mine, in the Kimberley region.

The state government this week said it was seeking expressions of interest from mining companies to reopen the mine, which was operational between 2002 and 2015, when the operator of the mine, Kimberley Diamond Company, went into administration.

The Department of Mines, Industry Regulation and Safety has been managing the site through the Abandoned Mines Programme since then and has undertaken a range of activities within the Ellendale area to minimise the environmental, safety and health risks at the site.

The state government said on Monday that the mine is still considered to contain marketable diamonds, with the operation having produced gem and industrial-quality diamonds, and having provided nearly half of the world’s fancy yellow diamonds.

Submissions for expressions of interest will close November 30, and will be evaluated by a panel of experts at the Department of Mines, Industry Regulation and Safety before being presented to Mines and Petroleum Minister Bill Johnston.

The Minister will choose the successful candidate after considering the expressions of interest, and a successful company will likely be announced in early 2019.

"We are looking for a company that will bring fresh eyes and a new approach to Ellendale,” Johnston said.

"I expect the successful company will have experience in diamond mining and marketing, they'll understand Western Australia's regulatory requirements and be able to fund the new operation.

"The reopening of this mine and the operating phase of the project will create jobs for Western Australians, which is the government's number one priority.”