DiamondCorp, the Southern African diamond mining, development and exploration company, announced that underground mining operations at the Lace diamond mine were temporarily suspended following an accident at the mine. The suspension followed an investigation on 15th July by the South African Department of Minerals Resources (DMR) into a fall of ground incident in a development tunnel on the 310m level.

The incident occurred when explosive misfires were being made safe and resulted in a miner's assistant suffering contusions and four cracked ribs. He was hospitalized for observation and is in a stable condition.

Following The outcome of the investigation led to an instruction that all miner's assistants undertake refresher training in the handling and charging up of explosives. This training commenced over the weekend until 20th July. Once the assistants are re-certified, the company will apply to the DMR to resume underground mining operations. In the meantime, the plant at Lace will process tailings. Although there has been no material or financial impact due to the temporary suspension, DiamondCorp will not be able to mine the target of 30,000 tonnes of ore in July. Management expect to achieve this rate in August and will aim to make up the July shortfall by the end of September.