INTERVIEW: De Beers May Again Look To Sell S Africa Namaqualand Mine

23rd Jul 2010 11:21

By Robb M. Stewart Of DOW JONES NEWSWIRES JOHANNESBURG (Dow Jones)--De Beers SA, the world's largest producer of uncut diamonds, would again consider selling its Namaqualand mine in South Africa as the market recovers from the effects of the global financial crisis. Gareth Penny, the company's outgoing chief executive, said Friday the sale process was put on hold when the recession drove down demand and prices for diamonds. The company also is in the midst of selling its Jagersfontein mine dumps in South Africa, he said. De Beers has sold several historic mines in recent years as it has concentrated on more profitable, large mines with a long life still ahead of them. Penny in an interview said Namaqualand would be an appropriate mine for a small diamond mining company to operate. Running along a 157-kilometer stretch of the Atlantic Ocean, diamonds in the mine are concentrated in old gravel beaches and river channels and have been mined in the area since 1927. De Beers suspended production in the first quarter of this year. Operations were halted from 1932 to 1937 due to a recession in the diamond market and again from late 1938 till 1943 due to World War II, it said on its Web site. De Beers in March said it had invited companies to register an interest in its Jagersfontein property, where a mine operated from 1870 to 1971 and rough diamonds now sit in waste dumps. It said at the time, the asset would be of interest to a company or consortium experienced in mining mine dumps. Founded in 1888 and taken private in 2001, De Beers produces and markets some 40% of the world's rough diamonds by value. It is 45%-owned by Anglo American PLC (AAUK), 40% by the Oppenheimer family and 15% by the government of Botswana. Penny said there are currently no plans to relist De Beers, and that he wouldn't want to speculate in any case. He said any decision on an initial public offering for the diamond producer is a matter for its shareholders. -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 23, 2010 06:21 ET (10:21 GMT)