BlueRock Diamonds PLC said Aug. 6 that it signed a five-year contract with Teichmann South Africa (Pty.) Ltd. for the latter to provide mining services to the Kareevlei diamond mine in South Africa.
The contract, which took effect July 1, provides for ore extraction, waste and haul to stockpile; breakdown of ore and ore delivery to the processing plant. BlueRock's prior mining services deal was on a per-hour basis, but its deal with Teichmann will be paid almost entirely on a per-tonne basis.
Based on the lower end of BlueRock's production expectations, Teichmann's services will cost about 21 million South African rand for the 12 months ending June 30, 2020.
Teichmann Co. Ltd., an investment company controlled by trusts connected to Teichmann South Africa, owns about 19% of the issued share capital of BlueRock.