De Beers to sell Namaqualand to Trans Hex for $33.5M
De Beers announced that it will sell the Namaqualand diamond mine in South Africa to Trans Hex for 225 million Rand ($33.5 million). The sale joins a number of low producing diamond mines the company has sold in South Africa in the past few years.
No details about the transaction were made available, and it’s not clear if this is a cash-only agreement. The timeline of the agreement is not known either, though in the past the approval of the South African government was needed, which may determine the ownership transfer.
e Beers said it picked Trans Hex after a rigorous selection process that evaluated prospective bidders on a number of criteria determined critical to ensuring the long-term sustainability of Namaqualand Mines community.
“During the past several years, DBCM [De beers Consolidated Mines] has implemented a deliberate strategy of reshaping its mining portfolio to focus investment on those mines that provide a superior level of return,” The company said in a statement.
“This comprehensive review of DBCM’s operations has improved the efficiency of the business while aligning the company with the broad transformation program underway in the South African economy. This has included the development of Voorspoed and significant investment in Venetia,” the company added.
According to Barend Petersen, Chairman of DBCM, the sell is testimony to DBCM’s commitment to involve other participants with empowerment credentials. “Together with their plans to continue operations at Namaqualand Mines, Trans Hex has agreed to take on the environmental rehabilitation program that is currently underway. We believe this will extend the economic viability of the Namaqualand Mines into the next decade.”
Today, De Beers has, through its wholly owned subsidiary DBCM three South African operations – Venetia Mine, Voorspoed Mine and the Kimberley Tailings.