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Magna Egoli Diamond Mine/Sierra Leone Nov, 2004 RAMAT GAN, ISRAEL - The Magna Egoli Mine, Sierra Leone’s largest mechanized mine, is fully owned by Waldman Diamond Resources of Israel. It’s located in the eastern part of the country along the Sewa River, near the Koidu and Tongo diamond regions. “It is unquestionably diamond territory – flying overhead in small aircraft you can see hundreds of diggers panning the rivers,” says Alex Waldman, founder and chairman of the Waldman Group. “They earn subsistence wages and hope for major finds,” noting they are paid guaranteed monthly wages. Waldman says he instituted good-neighbor policies in working with local tribal chiefs who own access to mining areas. Magna Egoli was instrumental in building a school, makes equipment available to neighboring artisanal diggers and provides transportation to the nearest large city of Bo so miners can stock up on supplies. The mining camp contains housing for miners, a nurse and medical facilities, which also serve the local community. Sierra Leone became democratic after decades of civil war, he says, and invites diamond investment. “The government prefers mechanized mining to loose diamond digging because there is more control, and diamond theft becomes virtually impossible,” he says. Magna Egoli started operations in 2001, with development costs expected to reach $8 million by 2005. The mine has an expected life of 10 years, and Waldman expects an estimated annual production of $25 million, with average weight of 0.57 carat and average value of $220 per carat, which is considered very high value for diamond rough. It produces 400 carats of diamonds per day. “While our margins are high, our costs are also very high,” he says. “Huge investments are needed in mechanized mining.” Rough is exported to Tel Aviv, Israel, for processing after it goes to Freetown for valuation. Waldman Diamond Resources sells assortments to its core customers and also processes and cuts its own diamonds. |