sustainable diamond industry
9 February 2007
South Africa's Department of Minerals and Energy (DME) and global mining
group De Beers today announced a ground-breaking agreement heralding a new era
of co-operation, aimed at creating an even more empowered and sustainable
diamond mining and exploration industry in the country.
In terms of this agreement it is the intention of both parties that,
following full consultation with affected parties, the West Coast operations of
Alexkor and De Beers Consolidated Mines' (DBCM) Namaqualand Mines will be
amalgamated into a new, stand-alone diamond mining company. This independent
and empowered company will be well positioned to capitalise on synergies that
exist across both operations and will realise the full economic potential of
the West Coast diamond mining industry. As a first step in this process, De
Beers will be issuing, through a special purpose vehicle, a 20% stake in its
Namaqualand Mines to the DME.
It is expected that the process of consolidating these assets will be
concluded in 2008 and thereafter the option of a listing may be fully examined
by the operator of this new company. It is not De Beers' intention to be the
operator of this company and De Beers will dilute its stake over time.
Furthermore, as part of the agreement, De Beers will, with appropriate
firewalls, make its management, technical expertise and assets available to the
DME for the next three years to facilitate the start up of the State Diamond
Trader. This further cements De Beers' commitment to play a constructive
leadership role in the diamond industry by encouraging industry growth and
facilitating broad BEE ownership and competition within the diamond sector in
South Africa.
"Throughout our global operations, De Beers' competitive advantage is in our
ability to engage in real and lasting partnerships with governments, ensuring
that diamonds continue to help diamond producing countries, like South Africa,
to build a more prosperous future for themselves," said Nicky Oppenheimer,
Chairman of the De Beers Group.
De Beers remains focused on implementing its R2.2 billion capital investment
programme in building new mines in South Africa. SASA (South African Seas
Areas) Project and Voorspoed Mine in the Free State are expected to be
operational in 2007 and 2008 respectively. Other capital investments in growth
projects include significant investment in its world class assets, Finsch and
Venetia Mines, as well as funding of new exploration activities to find the
diamond mines of the future in South Africa.
"This announcement represents an important step forward for the communities
along the West Coast, the people of South Africa and De Beers who will all
benefit from a consolidated mining operation founded in the spirit of
partnership," said the Minister of Minerals and Energy, the honourable Ms
Buyelwa Sonjica. She further stated that she appreciates the spirit that the
DME and the De Beers Group are building for the success of the diamond industry
in South Africa. She believes that this will have a positive impact on the
South African diamond market.
David Noko, Managing Director of DBCM said: "In addition to our growth
strategy, we intend to accelerate our transformation drive and continue to
contribute to the development of a transformed, sustainable diamond industry in
South Africa. This agreement will provide real opportunities for a new Black
Economic Empowerment company in the diamond sector to help meet government's
aspirations for a transformed South African diamond industry."
Enquiries:
Bontle Mafuna
Chief Director: Communications
Department of Minerals and Energy
Tel: (012) 317 8185
Cell: 082 773 2388
E-mail: bontle.mafuna@dme.gov.za
Sakhile Ngcobo
Head of Public and Corporate Affairs
De Beers South Africa
Tel: (011) 374 7974
Cell: 082 806 1394
E-mail: sakhile.ngcobo@debeersgroup.com
Issued by: Department of Minerals and Energy
9 February 2007
Source: Department of Minerals and Energy (http://www.dme.gov.za)
