Karelian Diamond Resources has received the mining concession certificate for the Lahtojoki diamond deposit, located in eastern Finland. The approval was issued by the Finnish Chemicals and Safety Agency(TUKES), under registration number K7363, and grants the company the formal right to use the minerals contained within the 71-hectare concession.
Consensus for the Lahtojoki diamond field
Karelian will thus be able to move forward with the next stage of work on the kimberlite deposit, which covers 16 hectares within the permitted land. This administrative advance is a step forward in the development of what could become the first operational diamond mine in the European Union.
The company’s CEO, Maureen Jones, noted that the confirmation of the mining record allows for clearer planning of subsequent work at the Finnish deposit.
The Lahtojoki deposit contains gem-quality colorless diamonds, but it also hosts colored stones, particularly pink diamondswhose high market demand can increase their value twenty-fold compared to conventional gemstones. This component is one of the most attractive of the project, both for its rarity and its commercial potential.
According to a Preliminary Economic Assessment conducted in 2017, it was estimated that the deposit could contain over 2 million carats, with an in situ value in excess of US$211 million. Although that study did not include the impact of colored diamonds on revenue, an open pit mining operation with a life in excess of 9 years was recommended.
Preliminary calculations indicated an Internal Rate of Return of 55% and a payback of the investment during the second year of operation. The Net Present Value of the project, with a discount rate of 8%, was estimated at US$39.1 million.
With the issuance of the certificate by TUKES, Karelian continues to firmly establish itself in the development of its flagship project. This legal permit validates the geological potential of the deposit and allows the company to initiate larger scale operating activities in a regulated environment with strong institutional backing.
This development positions Finland as a potential benchmark for gem mining within the European bloc, where until now there were no active diamond mines. Lahtojoki’ s entry into production could improve the regional diamond mining map and open up new opportunities for the continent’s mining industry.
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Source and photo: Karelian Diamond Resources / PDF
