De Beers to Sell Kimberley Mines to Investor Consortium

De Beers Consolidated Mines (DBCM) announced that it’s signed an agreement to sell Kimberley Mines as a going concern to Ekapa Minerals (Pty) Ltd., an investor consortium.
According to the release, the consortium is made up of Ekapa Mining (Pty) (50.1 percent) and Petra Diamonds Ltd. (49.9 percent). Both companies have “proven track records in diamond mining in Kimberley.”
The release also states:

Over the last few years, DBCM has explored a variety of options to extend the life of its Kimberley Mines beyond 2018. Following the review, DBCM concluded that the best way to secure a future for Kimberley Mines was to find an operator better suited to process the remaining resources in a long-term, sustainable way, ensuring continuation of employment and economic activity in the Northern Cape.
The sale process followed a competitive process that attracted more than 70 expressions of interest. The decision to sell to Ekapa Minerals was predicated on the basis that it is an experienced local TMR operator with sound technical, financial and economic capability as well as strong corporate social responsibility credentials, including a real and ongoing commitment to the Kimberley region. The sale combines experienced operators and enables them to leverage their joint resources, expertise and capabilities to create a compelling future for Kimberley’s tailing resources.

Barend Petersen, chairman of DBCM, commented:

Throughout this process, our objective has been to sustain operations, protect jobs and grow empowered participation in South Africa’s diamond industry. A rigorous, independently-advised process enabled De Beers to select a consortium with not only the right mining and financial credentials, but also a commitment to meet future social and labour plans, and environmental obligations. We are delighted that the new owning consortium is broad-based HDSA (Historically Disadvantaged South Africans) controlled – illustrating that transformation in the South African diamond industry is steadily making progress.

Click here to read the full De Beers Consolidated Mines press release.