Israeli-Owned Diamond Miner Mulls IPO To Boost Output

Sierra Leonean diamond miner Koidu Holdings is considering a possible flotation while hoping to reach a target of quadrupling its output to 45,000 carats a month in July, according to a report in Reuters.

diamond exchangeKoidu CEO Jan Joubert told Reuters in an interview that a $200-million expansion of its facility would increase output from its current pace of 10,000 carats a month to 35,000 a month in May and to 45,000 carats in July.

According to Reuters, Koidu, which is owned by Israeli diamond trader Beny Steinmetz’s BSG Resources, plans on using the proceeds from any initial public offering to develop the Tongo diamond concession south of the Koidu project.

Joubert gave no further details. Steinmetz, who now acts as adviser to the BSGR board, was quoted by the Financial Times last month as saying there was a “good possibility” of a Hong Kong flotation in the second half of this year. The paper said the aim was to raise $400-$600 million and achieve a valuation of $2-3 billion.

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