Shear suspends production at Jericho

by eyetee | October 2, 2012 2:47 pm

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The drop in world diamond prices has stalled Shear Diamonds’ plan to revive the Jericho mine, bringing production of its high-grade stockpiles to a halt.

Less than a year after it signed a deal with Belgium-based Taché Company and began delivering parcels, Shear announced it is suspending operations at those sites until prices recover. Right now, it says it is unable to break even and that halting production for the time being is in the company’s long-term interest.

“While we are gratified we achieved our 2012 goals, we are subject to many factors that are outside our control, such as current low diamond prices,” said Shear president and chief executive officer (CEO) Julie Lassonde.

“Prices have dropped significantly just as we were hitting our stride. Shear had assembled an outstanding team that has enabled us to overcome many challenges and in achieving our goals, including recently repairing a damaged thickener core well ahead of schedule and on budget. We will now turn to obtaining further financing for exploration.”Â 

Until prices recover, Shear says it will look at exploration assets near Jericho, which it says has a significant number of diamonds went unrecovered during Jericho’s previous operations.

Source URL: https://www.jewellerybusiness.com/news/shear-suspends-production-at-jericho/

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