Gem Diamonds stops production at Indonesia

The economic slowdown has prompted Gem Diamonds Ltd plans to close its operations at Cempaka mine in Indonesia and put the mine on repair and maintenance. The decision was taken due to low diamond prices and as per media reports, the company was anticipating a loss.

The mine would be reopened when the prices of diamonds improve. The company’s November statement, showed a dip in trading revenue during the last quarter of the year. At this time the average price paid for its gems was $1,382 over the $1,916 price average achieved in the year. The company operates mines in Lesotho, Australia and Indonesia.