The company's application for a mining concession over the Lahtojoki deposit was initially approved by TUKES, the Finnish mining authority. Following this, the National Land Survey, acting on TUKES' order, conducted proceedings to establish the mine's boundaries and determined a ground rental compensation of €162,815 for the landowners. Karelian paid this amount in full by March 2023.
However, the landowners challenged the compensation and sought changes to the mine boundaries, bringing their case before the Finnish Land Court. On Monday, the court upheld the original boundary decision and rejected most of the landowners' claims regarding compensation. Three specific items were referred back to the National Land Survey for further review.
Karelian Diamond Resources hailed the court's decision as a crucial milestone in the development of the Lahtojoki diamond deposit. The company emphasized that the finalization of mine boundaries is an essential step toward moving the project forward, pending any necessary environmental assessments.
The Lahtojoki diamondiferous kimberlite pipe is believed to have the potential to become a profitable open-pit mine with a low strip ratio. The deposit is reputed to contain high-quality colorless gem diamonds, as well as pink and other colored diamonds, which can command prices up to 20 times higher than those of regular colorless gems.
As Karelian moves closer to realizing its ambitious project, the European Union could soon see the establishment of its first diamond mine, marking a significant development in the region's mining industry.
