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De Beers still keen to sell Namaqualand mine
Reuters
Posted: Thu, 19 Mar 2009
[miningmx.com] -- De Beers, the world's biggest producer of rough diamonds, said on Thursday it was still keen to sell its Namaqualand mine in South Africa once the market improves, after talks to sell it fell through.
The sale of Namaqualand, which is operated by De Beers' South African unit, was put off by the downturn in the commodities market in the wake of the financial crisis, leading to a sharp fall in demand for diamonds.
Smaller diamond producer Trans Hex Group Ltd. said on March 5 that talks between the firm and De Beers on a possible sale of the unit were terminated because of the current uncertain global economic conditions.
De Beers, which is 45% owned by mining group Anglo American, said it has been operating its South African mines at a reduced capacity, including Namaqualand.
De Beers said its unit De Beers Consolidated Mines will continue to
operate the mine, which it said did well despite a down turn in the world economy since last year.
"The company is confident that in normal trading conditions, and with the few known new diamond resources on the horizon, and the likely growing demand for diamonds in the future, Namaqualand remains an attractive alluvial deposit to an investor," Lynette Gould De Beers' London-based spokeswoman said in a statement.
De Beers has said it would cope with the hard times brought on by the crisis by significantly reducing output levels by temporarily closing some mines, costs, including jobs, and capital expenditure at its seven mines in South Africa.
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