The idea of diamonds is a lot of fun for everyone, especially as they are able to purchase beautiful diamonds, regardless of their size. Now, there is one more way that people can purchase diamonds and that is through the new Kono diamond mine.Loose diamonds can be purchased through individuals or through diamond dealers, which will then set the diamonds in different pieces of jewelry. Often, it is the individuals who purchase just the diamond and just the jewelry to have them later pieced together that will get the best deal possible. However, for many people, including celebrities and the social elite, it may not be possible to meet with big diamond companies that sell massive amounts of diamonds to jewelers and businesses with an enormous amount of cash.
Therefore, the idea of smaller diamond companies, including joint ventures, is one that may allow others to participate in diamond sales on a smaller scale. For example, through its joint venture, Stellar Diamonds recently announced that 1,049 carats of diamonds were sold through the Kono Kimberlite Diamond Project.
Although a final number was not given for the sale last week, reports do show that the largest of the diamonds was 10.55 carats and sold for $31,000. The other major diamond player in the venture is Petra Diamonds, which holds 51 percent of the Kono Diamond Project.
The unique part of the Kono Project is that it takes place in Sierra Leone’s only underground diamond mine. The mine, which is currently working through an exploration license, has ambitious plans to reach full-scale production and apply for a full diamond mining license sometime in 2009. There still needs to be approximately three to six months of testing before they company can move forward. Once the Kono Project reaches full-scale production, they will also be able to receive a stock market listing, which will greatly influence their overall profit.
Eventually, Stellar Diamond hopes that the underground diamond mine will provide revenues of approximately $40 million per year. Of that amount, the Sierra Leone government will receive an average of $14 million each year, which would greatly help the government, which is strapped for cash, through the taxes and royalties that they are owed.
Although the approach of diamond mining is not anything new for those who know the history of diamonds, the idea of an underground diamond mine is something that can change the way companies mine for diamonds. Mining now takes place at up to 65 meters depth from two shafts, although the company plans to dig down to 120 meters. This would require the addition of underground railway tracks and ventilation systems.
Currently, Stellar Diamonds is looking to branch out with their mining prospects and has found four potential diamonds mines in Leone, Guinea, and the DRC so that they may reach a level of two producing mines during 2009.
Already, 300 Sierra Leonean residents are staff members on the Kono Project, although Stellar Diamond plans to double that number once the project reaches its full potential. Sierra Leoneans are well trained in rock drilling, blast cuts, and other skills related to the diamond industry and are praised as being intelligent, eager, and hard working. In fact, some shifts are completely staffed by Sierra Leoneans, which is an amazing effort for a country that has almost two-thirds of its people out of work.
While Sierra Leone may not have what some larger companies consider “monster mines,” they do offer their fair share of medium and small mines, which are workable for a number of other companies. When the larger companies do not make their move, it opens up many opportunities for these other companies, like Stellar Diamonds, to become a player in the diamond industry market.
The work completed in Sierra Leone is not only beneficial for the residents of the country but for people everywhere. Major diamond companies control the number of diamonds that are available so that they can control the worth of diamonds that they produce from their monster diamond mines. But, when more and more smaller companies are able to take advantage of the small and medium diamond mines that are available, then there is less control by the major players and more freedom for those who love diamonds.
What this means for the average buyer is the opportunity to pick from a wider selection of diamonds and get an excellent deal on the diamond(s) of your choice. However, diamond buyers still need to be smart as they make their purchase, researching what they want from their diamond, the kind of cut that they prefer, and where they can find the best possible deal. Although more diamond companies means that there will be more selection and availability, it is up to any individual to make sure that they get exactly what they pay for from their diamonds.
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