Karelian clears key hurdle for EU’s first diamond mine

Karelian Diamond Resources PLC on Thursday confirmed it had a mining concession certificate for the Lahtojoki diamond deposit in Finland.

Shares in the Dublin-based mining firm more than doubled to 1.53 pence each after Thursday morning’s announcement in London. In the past year, the firm’s stock has fallen 41%, giving it a market capitalisation of about GBP2.20 million, as of Thursday.

Karelian operates the Colebrook metal project in Northern Ireland, from which it is currently awaiting early results. The firm’s maiden diamond scheme targets Finland’s Kuopio-Kaavi region, and if successful, will be the first diamond mine in the EU.

The Finnish Safety and Chemical Agency has registered Karelian’s exploration rights Lahtojoki and issued a certificate which entitles the firm to use minerals extracted from the area. Maureen Jones, the managing director of Karelian, called this “a critical step for the company”, which allows Karelian to start planning the next stage of work at Lahtojoki.