De Beers mulling bids for mines

I-Net | Thu, 29 Jul 2010 19:49

[miningmx.com] -- DIAMOND mining giant De Beers said on Thursday that it had received approaches from potential investors interested in purchasing Namaqualand Mines and Finsch Mine in the Northern Cape.

The interest comes on the back of the continuing recovery in the diamond market.

"To assess these expressions of interest appropriately, De Beers will undertake a systematic review process that will include evaluating the offers received from companies with good mining track records, and strong empowerment credentials.

"In addition interested parties will have to satisfy many other economic, social and environmental criteria when formulating their submissions," the group said in a statement.

The acting CEO of De Beers Consolidated Mines (DBCM), Barend Petersen, stated: "We have had approaches from companies interested in discussing the future of Namaqualand Mines and Finsch Mine in the Northern Cape. De Beers has decided to invite separate expressions of interest in each mine through a select tender process."

It is expected that the process will take a number of months to reach a conclusion - extending at least well into 2011. Production at Finsch will continue as planned, while economic development and environmental rehabilitation projects will continue at Namaqualand Mines where production was temporarily suspended in April 2010, Petersen said.

"Should attractive offers be forthcoming the introduction of a new investor at Finsch, with its significant underground resources, and at Namaqualand, with its alluvial reserves, will impact positively on the Northern Cape and extend the life of the mines into the next decade at least," Petersen added.