POZ to bid for Ellendale diamond mine

POZ Minerals, which operates the Blina diamond project in the Kimberley, has announced it will bid in the state government’s tender to reopen the neighbouring Ellendale mine. 

Located 120 kilometres east of Derby, Ellendale was mined between 2002 and 2015 and is still considered to contain marketable diamonds.

Kimberley Diamonds Company was the operator of the mine, and was placed into voluntary administration in 2015.

The company was a subsidiary of Kimberley Diamonds, which delisted from the ASX in 2017. 

The mine has produced gem and industrial-quality diamonds, and previously produced about half of the world's highly valued fancy yellow diamonds. US jeweller Tiffany & Co was a major client.

POZ operates the Bina diamond project, which surrounds the Ellendale mine.

“POZ believes it is extremely well placed and eminently qualified to operate the Ellendale project to the benefit of all stakeholders and the company will lodge an expression of interest for Ellendale,” the company said in a statement to the ASX.

The state government recently called for expressions of interest for a new operator, with Mines and Petroleum Minister Bill Johnston saying the government was looking for a new approach at the mine.

"I expect the successful company will have experience in diamond mining and marketing, they'll understand WA's regulatory requirements and be able to fund the new operation,” he said.

"The reopening of this mine and the operating phase of the project will create jobs for Western Australians, which is the McGowan government's number one priority.”

Submissions close on November 30 and will be evaluated by a panel of experts at the Department of Mines, Industry Regulation and Safety before being presented to Mr Johnston.

Mr Johnston will make the final decision, which is expected to be made in early 2019.

Shares in POZ finished down 1.35 per cent at 7.3 cents each today.