Wrap Text
RDI - Rockwell Diamonds Incorporated - Rockwell obtains permission for
continuous operations at Northern Cape Mines
ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of British Columbia,
Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI ISIN: CA77434W2022
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
ROCKWELL OBTAINS PERMISSION FOR CONTINUOUS OPERATIONS (contops) AT
NORTHERN CAPE MINES
November 15, 2011 Vancouver, BC - Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has
reached an agreement with the National Union of Mineworkers ("NUM") to
implement contops and has concluded a two year wage settlement at its
Northern Cape Operations.
The Company is pleased to report that an agreement has been signed with
the NUM to convert its Northern Cape operations which currently comprise
the Saxendrift and Klipdam mines, to contops. The application to the
Department of Mineral Resources ("DMR") for this conversion has been
submitted. It is supported by the NUM, a crucial criterion in obtaining
the approval of the DMR. Once implemented, the mines will be operated on
four shifts, seven days a week, up from the current three shifts per day
and five day working week.
"We are pleased to have reached this agreement with the NUM as the
conversion to contops will have broad ranging benefits to all
stakeholders once implemented," says James Campbell, the CEO of Rockwell.
"This will lead to the creation of employment opportunities in the
Northern Cape, which is currently burdened with a 43% unemployment rate.
For Rockwell, it will be equally beneficial as increasing our production
off the same fixed cost base will enable us to optimize the returns on
our investments in our mines."
He adds that "at the Klipdam mine, contops will make it more feasible to
increase the life of mine in the short to medium term while at Saxendrift
we have identified an opportunity to improve margins. At our Tirisano
mine which went into production in mid-October, we implemented contops
from start-up of the new mine, as we had previously obtained the required
approvals."
In addition, the Company has agreed on a two year wage settlement with
the unit representative of the NUM for the Northern Cape. Accordingly,
annual wage increases of 8% will be granted for the next two years until
2013. The agreement allows for an adjustment should the consumer price
index (CPI) exceed the agreed rate.
At Tirisano which falls under a different bargaining unit, the Company
has an existing wage settlement agreement which will come up for renewal
in June 2012.
"We reached a mutually agreeable settlement following a protracted
negotiation process with the NUM," explains Campbell. "We believe that
the result was fair and equitable, taking into account the wellbeing of
our workforce, but not to the detriment of our efforts to improve the
financial performance of the Company."
For further information on Rockwell and its operations in South Africa,
please contact
James Campbell
CEO
+27 (0)83 457 3724
Stephanie Leclercq
Investor Relations
+27 (0)83 307 7587
ABOUT ROCKWELL DIAMONDS:
Rockwell is engaged in the business of operating and developing alluvial
diamond deposits, with a goal to become a mid-tier diamond mining
company. The Company has three existing operations, which it is
progressively optimizing, two development projects and a pipeline of
earlier stage properties with future development potential.
Rockwell also evaluates merger and acquisition opportunities which have
the potential to expand its mineral resources and production profile and
would provide accretive value to the Company.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION
CONTAINED IN THIS NEWS RELEASE.
Forward Looking Statements
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized
by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. Although the Company
believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those
in forward-looking statements include uncertainties and costs related to
exploration and development activities, such as those related to
determining whether mineral resources exist on a property; uncertainties
related to expected production rates, timing of production and cash and
total costs of production and milling; uncertainties related to the
ability to obtain necessary licenses, permits, electricity, surface
rights and title for development projects; operating and technical
difficulties in connection with mining development activities;
uncertainties related to the accuracy of our mineral resource estimates
and our estimates of future production and future cash and total costs of
production and diminishing quantities or grades if mineral resources;
uncertainties related to unexpected judicial or regulatory procedures or
changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations; changes in general economic
conditions, the financial markets and the demand and market price for
mineral commodities such and diesel fuel, steel, concrete, electricity,
and other forms of energy, mining equipment, and fluctuations in exchange
rates, particularly with respect to the value of the US dollar, Canadian
dollar and South African Rand; changes in accounting policies and methods
that we use to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates;
environmental issues and liabilities associated with mining and
processing; geopolitical uncertainty and political and economic
instability in countries in which we operate; and labour strikes, work
stoppages, or other interruptions to, or difficulties in, the employment
of labour in markets in which we operate our mines, or environmental
hazards, industrial accidents or other events or occurrences, including
third party interference that interrupt operation of our mines or
development projects.
For further information on Rockwell, Investors should review Rockwell`s
annual Form 20-F filing with the United States Securities and Exchange
Commission www.sec.com and the Company`s home jurisdiction filings that
are available at www.sedar.com
Canada
15 November 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 15/11/2011 15:30:02 Supplied by www.sharenet.co.za
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