[miningmx.com] — TRANS Hex has its eye on a possible “bonus’ in its acquisition of Namaqualand Mines from De Beers, consisting of potential high-grade diamond deposits in the coastal surf zone.
Speaking on Thursday at a presentation to investors in Johannesburg on the group’s annual results, CEO Lllewellyn Delport said Trans Hex owned the shallow water marine diamond mining concessions opposite the Namaqualand Mines operation.
He said there were known, high grade diamond zones on land which extended into the surf and coastal zone which neither De Beers nor Trans Hex had been able to exploit.
This was because the infrastructure required – such as sea walls – to carry out the mining would impinge on the other company’s property.
These diamonds were in addition to the 10m carat resource which De Beers had estimated remained at Namaqualand Mines.
“We would be able to mine those areas when we are in a position where we own both the land and the sea concession,’ he said.
Namaqualand Mines is located on the West Coast of South Africa, close to Trans Hex’s Baken mine.
Delport played down concerns over the financial implications for Trans Hex of the environmental liabilities it would be assuming at Namaqualand.
“We mine extensively in Namaqualand and we know what is required. We have already rehabilitated large areas to the satisfaction of the state.
“We first looked at Namaqualand Mines in 2008, ahead of the global financial crisis. We must give credit to De Beers for the rehabilitation work they have continued to carry out at Namaqualand since then, despite the poor state of the diamond business during this period.
“We are prepared to take on the environmental liability that exists there. EPI (Emerald Panther Investments) has made full provision for the financial guarantees required for the rehabilitation liabilities.”
Trans Hex called off the first round of negotiations with De Beers over Namaqualand in March 2009, citing “current uncertain global economic and industry conditions’.
The company has now agreed to buy Namaqualand for R225m through an associate company, EPI, in which it has a 50% stake.
The other partners in EPI are RECM and Calibre (34%) and Dinoka Investment Holdings (11%). The remaining 5% is to be allocated to “broad-based historically disadvantaged groups of persons.’
Delport said Trans Hex had brought in partners for the acquisition because the group could not afford to do the deal on its own.
“We were not prepared to jeopardise the main business through an acquisition,’ he said.
