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Articles from DIAMONDS BY CUT - ROUGH (UNCUT) (66 Articles)










De Beers has sold the Kimberley Mines operation for US$7.2 million
De Beers has sold the Kimberley Mines operation for US$7.2 million

Market forces De Beers to sell, suspend diamond mines

The De Beers Group has sold its well-known Kimberley diamond mine and suspended production at another site as it reassesses its market position.

The Kimberley Mines diamond mining operation located in South Africa has been sold to a newly formed consortium known as Ekapa Minerals for approximately US$7.2 million (AU$9.8 m).

As previously reported by Jeweller, De Beers announced in May this year that it would sell the Kimberley Mines site, which was discovered in 1871, as it no longer suited the company’s strategic plan and asset portfolio. It was said the sale would also allow for the mine’s continued operation beyond 2018.

The Kimberly Mines acquisition includes the operation’s existing plant; its employees, assets and liabilities; as well as its tailings mineral resources, which comprise several “dumps” of previously mined rock that may still contain diamond.

Ekapa Minerals is majority owned (50.1 per cent) by Ekapa Mining, a tailings mineral resources processing business that has been operating in Kimberley, South Africa, for more than 25 years.

The remaining 49.9 per cent of the consortium is owned by Petra Diamonds, a UK-based diamond producer with existing diamond mining operations in South Africa and Tanzania, as well as an exploration program in Botswana.

Among Petra’s South African operations is Kimberley Underground, a formerly closed mine that the UK producer acquired from De Beers in May 2010 and rehabilitated to continue production.

A statement indicated that Ekapa Mining, which will be the lead operator of the Kimberley Mines, expected to produce about 700,000 carats per annum within the first three years of operation.

Snap suspension

In related news, De Beers’ Canada-based Snap Lake diamond mine has entered into a “care and maintenance” period following a review of the mine’s operation.

The move involved an immediate halt to production and the dismissal of 434 employees.

De Beers Canada chief executive Kim Truter said despite the company’s efforts, “even the gains made this year are not enough to overcome the market conditions and put us in a profitable position”.

De Beers indicated it would evaluate market conditions over the coming year to determine whether the continued operation of the mine would be viable.

More reading
De Beers to sell flagship diamond mine
Revenue slumps for big diamond producers
De Beers’ production and sales decline











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