De Beers sells Cullinan mine

De Beers Consolidated Mines - the South African arm of the diamond giant, De Beers - has agreed to sell the Cullinan Diamond Mine as a going concern to the Petra Diamonds Cullinan Consortium for R1billion payable in cash.

De Beers Consolidated Mines - the South African arm of the diamond giant, De Beers - has agreed to sell the Cullinan Diamond Mine as a going concern to the Petra Diamonds Cullinan Consortium for R1billion payable in cash.

The consortium comprisesPetra Diamonds, listed on the Alternative Investment Market of the London Stock Exchange; Saudi-based investment company, Al Rajhi Holdings; and an empowerment company Thembinkosi Mining Investments.

Thembinkosi's shareholders include Sedibeng Mining, Namoise Mining, Umnotho weSizwe Group and a Petra employee share trust.

The chief executive of Petra Diamonds, Johan Dippenaar, said: "This transaction is a transformational deal for Petra and reflects the opportunities [De Beers Consolidated Mines] is creating for new players in the diamond industry."

Petra Diamonds, the second largest diamond producer in South Africa after De Beers, has operations in Angola, Botswana and Sierra Leone.

Petra has also acquired the Dancarl Mine in the Barkley West District of the Northern Cape and the Koffiefontein Mine in the Free State from De Beers. - I-Net Bridge

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