Australian mining company Newfield Resources is set to bring in a new partner to manage operations at its Tongo diamond deposit in Sierra Leone. The company has signed a non-binding term sheet with fellow Australian firm ACA Resources, paving the way for ACA to oversee mining activities at the site.
If the agreement is finalized—expected between now and June—ACA Resources will take full control of mining operations, with Newfield paying a fee per carat of diamonds produced. The move is aimed at ensuring that the mine becomes a long-term, sustainable producer of high-quality diamonds in Sierra Leone, according to both companies.
Tongo’s Ownership Journey and Market Performance
Newfield Resources acquired the Tongo mine in March 2018 through the $23.6 million acquisition of London-based Stellar Diamonds. Prior to that, the mine was controlled by Israeli businessman Beny Steinmetz, who held a stake in Koidu Holdings, the previous owner.
The mine officially entered the sales market in May 2022, when its first batch of 5,200 carats fetched an average price of $262 per carat.
Investment and Future Prospects
Newfield has invested $80 million into the mine, developing 2 kilometers of underground infrastructure to support operations. The deposit is projected to have an initial eight-year lifespan, with peak annual production expected to reach 260,000 carats by Year 5.
By bringing ACA Resources on board, Newfield aims to optimize operations and maximize efficiency, ensuring that Tongo remains a key player in Sierra Leone’s diamond sector for years to come.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
