Premier opens new diamond mine in West Kimberley

1/09/02
Premier Geoff Gallop today officially opened the Ellendale Diamond Mine in Western Australia's West Kimberley region.
Dr Gallop said Kimberley Diamond Company's Ellendale mine - which was commissioned in June and produces high-grade diamonds of gem quality - was an important new development for Western Australia.
"The mine, which cost almost $3million to build, is expected to generate more than $100million in export earnings over the next three years," he said.
"Stage one of the project will process about 700,000 tonnes of ore body per annum.
"And over the initial two-to-three-year Stage One operations, it is expected that an estimated 350,000 carats could be recovered.
"This is exciting news for the WA resources sector, with the launch of WA's second diamond mine - the first in the State in nearly 20 years - and for all Western Australians who will benefit from the mining royalties."
More than 70 people currently work full-time at the Ellendale mine and this is expected to increase to 130 people during stage two.
Dr Gallop said the Ellendale mine had a prosperous future.
The Kimberley Diamond Company is already looking to expand the project to exploit deeper resources (in pipes four and nine and near surface enrichment zones in other pipes throughout the Ellendale mining lease).
"If this expansion proceeds, the potential exists for the company to generate a further $400million in earnings over a five-year period," the Premier said.
"World diamond prices are buoyant and demand is currently strong and outstrips supply.
"And with the broad application of diamonds in today's society - from jewellery to laser machinery components - the future prospects for the diamond industry and for the Ellendale mine look very bright."
Premier's office: 9222 9475