Stornoway Completes Underground Mine

RAPAPORT... The Renard underground mine in Canada is running at full capacity,after a slower-than-expected transition from open-pit operations in the firsthalf of the year, Stornoway Diamond Corporation said Tuesday.The miner is producing 6,039 tonnes of ore per day from theasset, higher than its initial estimated design capacity of 6,000 tonnes perday, it said.The company had expected the ramp-up to full production tobe completed by the end of the second quarter, but issues with equipment andmanagement problems impeded progress. The delays affected Stornoway's resultsduring the three months ending June 30, as lower-quality production led thecompany to a net loss of $27.4 million. "Completion of the underground-mine ramp-up at Renard hasnot been without its challenges," said Stornoway CEO Matt Manson. "However, today's newsis validation of the design of the project, the quality of the Renard orebodies, and the dedication of the Renard mining team and contractors." The miner is recovering a higher grade of diamonds from theunderground portion, and will continue to process ore from that area for the restof the year, Manson added. In May, the company reduced its production expectations forthe year to between 1.35 million and 1.4 million carats from its original estimate of 1.6 million carats. Meeting the revised forecast was dependent onStornoway's completion of the transition, and maintenance of its productionlevels. The miner reached commercial production at Renard inDecember 2016.