[miningmx.com] — DE BEERS Consolidated Mines (DBCM) told parliament on Wednesday it’s not planning to leave South Africa.
In a hearing by the committee for mineral resources on mining houses’ progress insofar the implementation of the mining charter, DBCM chief executive Phillip Barton had to repeatedly reassure his audience that the company was not busy closing its doors.
“We still believe strongly in diamond exploration in South Africa,’ said Barton.
Outside the sitting, Barton told journalists that the reason for that impression could be that De ¬Beers had significantly altered its “fundamental strategy’.
The company had sold five mining operations in recent years, including Cullinan, certain underground operations at Kimberley, Koffiefontein as well as Jagersfontein.
Earlier this year its Finsch Mine was sold to Petra Diamonds. “Our strategy is based on yield and no longer simply on volume. Our Finsch Mine failed to achieve the required yield. Petra thought otherwise,’ said Barton.
He pointed out that a feasibility study report on a possible R15bn investment in the Venetia Diamond Mine in Limpopo would be finalised in February. This figure had been adjusted from an earlier one of R10bn, which had excluded escalation costs. It would be submitted to the DBCM board in March and involved an investment project of up to eight years.
He said this investment should be done early in 2012 to extend the life of the Venetia Mine. Depending on the nature of the mining, Venetia could produce a good yield up to 2050.
Barton said DBCM would continue disposing of land, but not as a fire sale.
– Sake24
