KOMATSU
Young Diamond Producer Rockwell Diamonds Prepares for Major Expansion of Northern Cape Operations
By Jack van Zyl, Komatsu Southern Africa (Pty) Ltd.



GD825A motor grader performing haul road maintenance

A D475A bulldozer stockpiling alluvial diamond bearing gravel for PC800SE hydraulic excavator, which loads the material into HM400 articulated dump trucks

Managers and staff of Rockwell Diamonds Inc. at the Wouterspan mining site



WA430 wheel loaders putting alluvial diamond-bearing gravel onto the screening plants
Rockwell Diamonds Inc. has recently purchased new and larger earthmoving equipment so as to expand its existing operations. All the new equipment—a total of 23 units—that the company has purchased to achieve the targeted higher production levels is Komatsu equipment, adding to an existing fleet that is already dominated by Komatsu, which accounts for over 95% of the total.

New equipment Komatsu Southern Africa (Pty) Ltd. (KSA) has delivered by 2007 to the Klipdam and Wouterspan mining sites includes the following. A 200-tonne (220-U.S.-ton) PC2000 hydraulic mining backhoe, three 55-tonne (61-U.S.-ton) capacity HD465 rigid dump trucks and four 18-tonne (20-U.S.-ton) WA430 wheel loaders have been delivered to the Klipdam mining site. New equipment supplied to the Wouterspan mining site comprises a 253-tonne (279-U.S.-ton) PC3000 hydraulic mining backhoe, three 91-tonne (100-U.S.-ton) capacity HD785 rigid dump trucks, a 104-tonne (115-U.S.-ton) D475A bulldozer, a 29-tonne (32-U.S.-ton) GD825A motor grader, a 29-tonne (32-U.S.-ton) WA500 wheel loader, six 18-tonne (20-U.S.-ton) WA430 wheel loaders and an 11-tonne (12-U.S.-ton) WH714H telescopic handler

Reliability, Productivity and Competitiveness Underscore Komatsu Equipment and Service
"The reasons why we purchase and use Komatsu equipment almost exclusively are quite simple," said Mr. Hennie van Wyk, the original company's founder, managing director and main stakeholder. "Firstly, the equipment has proven itself to be extremely reliable and productive under our operating conditions and the equipment keeps getting better as new models become available. For example, fuel consumption in particular has improved remarkably, which contributes significantly towards keeping our operating costs down.

"We have always found Komatsu equipment to be competitive compared with other makes of equipment.

"In addition and most importantly, the cooperation and assistance we get from Komatsu has been invaluable. This has been a major factor that has persuaded us to stay with Komatsu because the relationship between customer and supplier is crucial in ensuring that we maintain production at a steady rate and hold operating costs at a viable level.

"We have always enjoyed attention from KSA's top management, as well as other Komatsu staff, which ensures that we get the best possible service and support. I don't think there was ever an occasion when a delivery wasn't on schedule and whenever any problems have arisen with the equipment, they have been attended to quickly."

Mr. Van Wyk said for the company to remain profitable operating costs cannot be allowed to rise above an average of 21 rands per tonne. "The most expensive part of our operation is the earthmoving equipment, and it is the equipment that we depend on most to achieve our goal. If it's unreliable, isn't utilized fully or breaks down and stands idle, then we can't achieve this. For us, mining smartly includes choosing Komatsu because it helps to ensure that we keep our costs down to the 21 rands per tonne cut-off limit.

"Keeping our equipment operating at maximum efficiency and productivity is of absolutely vital importance. So Komatsu, with the support they provide, is a major contributor to our success," he concluded.
Rockwell Diamonds' Solid Foundation Underpins Targeted Production Increases
HC van Wyk Diamonds Ltd., now part of Rockwell Diamonds Inc., has grown into one of the largest alluvial diamond mining companies in South Africa, producing diamonds that rank among the highest quality gems in the world.

The company, based at Barkly West, 34 km (21 mi) northwest of Kimberley in the Northern Cape Province, owned only 12 units of earthmoving equipment when it began operating 13 years ago. Today, it has in excess of 120 units of earthmoving and ancillary mining equipment of all sizes and types, almost all of which are Komatsu machines.

HC van Wyk Diamonds has embarked on a brand new chapter of expansion. Through a tie-up with Rockwell Diamonds, a public company listed on the Toronto Stock Exchange, and most recently the Johannesburg Stock Exchange, which took effect in June 2007, the company has changed its name to Rockwell Diamonds Inc.

As a consequence of being able to access funding from international capital markets, the company has embarked on an aggressive growth and expansion drive via increasing existing operations with new and bigger Komatsu mining equipment in addition to acquisitions.

Rockwell Diamonds has emerged as a company of Hunter Dickinson Inc., a Canadian management company that has successfully created at least eight other mining and development companies around the globe.

Under the new structure, the company is majority-owned and controlled by Rockwell Diamonds, and is fully empowered in the South African context through an investment made by Africa Vanguard Resources (Pty) Ltd., which owns 26% of the company.

Most importantly, Mr. Hennie van Wyk continues to play a major role in the new enterprise as operations director and a key shareholder.

The company is extending operations at its existing mines located at Holpan-Klipdam, near Barkly West, and at Wouterspan on the banks of the Middle Orange River between Douglas and Prieska, about 120 km (75 mi) west of Kimberley.

In addition, it is in the process of acquiring a large package of diamond-bearing properties, including Saxendrift, Nuwejaarskraal and Kwartelspan on the opposite side of the river to Wouterspan. It hopes to commence operations on the south bank of the Middle Orange River in early 2008.

"Our current production from our existing operations is in the region of 700,000 tonnes (771,610 U.S. tons) of in situ gravel per month and we are looking to almost double it to around 1.2 million tonnes (1.3 million U.S. tons) per month in 2008," said Mr. Van Wyk.