De Beers put the C-Cut expansion project at its Cullinan mine on hold as the strong rand hampered many mining projects this fall.
De Beers was one of several South African mining groups hurt by the currency’s strength. Southern Era Resources’ South African projects suffered–and it reflected in financial reports.
The rand forced the suspension of operations at Southern Era’s Klipspringer mine in the Limpopo Province.
Currency traders predict that market is likely to normalize midway through January.
Southern Era Incurs Net Loss for Quarter
Though the labor strike at Southern Era’s Klipspringer Diamond Mine was resolved in July, the company suffered a net loss for the third quarter–in large part because of an unexpectedly strong rand.
Overall for the company, net loss was $4.2 million, compared to a net loss of $0.7 million during the same period last year. Diamond sales slid in the quarter, to $648,000 in 2003 from $887,000 in 2002. The company produced 40,583 tons in the quarter, yielding 16,082 carats of diamonds.