IGE Resources AB, a Scandinavian company focused mainly on diamond exploration and diamond production in South Africa, has initiated a withdrawal from its Luxinge diamond project in Angola, the company announced today.

The diamond company's decision to withdraw from Luxinge comes after diamond recoveries and grades since the mining permit was granted in June 2010 failed to meet the expectations set by bulk sampling.

IGE also feels that its "current partner model and its administrative requirements challenge the project's viability." IGE manages the Luxinge diamond mining company, but is a minority shareholder. Angola's state-owned diamond company Endiama and other partners hold the remaining shares.

Meanwhile, IGE is installing additional mining equipment at its Cassanguidi diamond mine, also in Angloa, as part of efforts to ramp up recovery of diamonds and diamond grade at that site.

The company's Bakerville diamond project in South Africa is moving forward and the firm expects to have a mining license in the early part of this year. After assessing the diamond market and the currency exchange rate in South Africa, IGE will determine the optimal time to begin diamond production there.

In other news, the company has secured $15 million in credit. According to IGE CEO Tomas Fellbom, the loan enables the company to develop its diamond mining projects in South Africa as well as the Ronnbacken nickel project in Sweden.