Lucapa Diamond Company is facing a disruption to production at its Lulo mine in Angola after local community leaders barricaded all entrances to the deposit and made a “series of unreasonable demands,” according to the miner.
The blockade is currently peaceful, but it is preventing Lucapa’s workers from entering or exiting the site, the miner said Monday. The company is concerned over the safety of its employees should it try to break the barrier, it explained.
While the employees stuck inside the mine site are continuing to process stockpiled ore, there has been some downtime at the processing plant because a number of workers who live outside the mine gates have not been able to enter, Lucapa noted.
“The blockade has interrupted alluvial mining and kimberlite bulk sampling activities at Lulo,” the miner said. “There is a risk the blockade could impact Lulo’s first-quarter production results if it is not resolved soon, as stockpiled gravel is being depleted.”
The community leaders have made a number of “unreasonable demands” from the company that controls operations at Lulo, Lucapa said. The miner believes the local authorities are responsible for the matters the leaders want addressed.
“Lucapa has consistently supported the local community and adhered to its social responsibilities, but the company believes these new demands are unreasonable and unexpected,” it said. “Discussions are underway between the community leaders and a government delegation including representatives of the regional governor to peacefully end the blockade, however no progress has currently been made.”
Lucapa will provide further updates as the situation progresses, it added.
Image: The Lulo alluvial mine. (Lucapa Diamond Company)
