De Beers sells old S.Africa mine to black investors
Wed Sep 29, 2010 7:25am GMT
By Shapi Shacinda
JOHANNESBURG (Reuters) - De Beers, the world's largest diamond
producer, said on Tuesday that it had sold its Jagersfontein diamond
property to South Africa's Superkolong Consortium which comprises
black investors.
De Beers, which controls around 40 percent of the rough diamond
market, did not disclose the sale price for the tailings dump at the
Jagersfontein diamond property.
The mine produced some of the world's largest gems before shutting
down several decades ago.
"De Beers ... has concluded another transaction to introduce miners
with empowerment credentials to opportunities which have the potential
to deliver significant returns for many," De Beers acting CEO Barend
Petersen said in a statement.
De Beers said a community Trust would hold 10 percent equity ownership
in the holding company that has acquired its assets.
South Africa has been pressing mining companies to offer black
investors shares in their operations, under broader plans to empower
blacks and reverse imbalances caused by apartheid rule.
The Jagersfontein mine operated from 1870 to 1971 producing a tailing
mineral resource of just over 13 million tonnes, the company said.
De Beers is 45 percent owned by mining group Anglo American, 40
percent by South Africa's Oppenheimer family and 15 percent by the
Botswana government.
De Beers' first-half rough diamond sales surged 84 percent to $2.6
billion and production more than doubled to 15.4 million carats.
The company said output in the second half would be similar to that in
the first, bringing full year production to 30-32 million carats, up
from 24.6 million in 2009.
© Thomson Reuters 2010 All rights reserved
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