De Beers, one of the world's biggest diamond producers, has sold its Jagersfontein mine in South Africa's Free State province.  The mine was sold to the Superkolong Consortium, a black economic empowerment holding (BEE)

"I am very pleased to say that De Beers…has concluded another transaction to company.  While the mine stopped operating in 1971, De Beers only announced their attention to sell it in April.  The Consortium would acquire all assets of the mine, including the mine dumps. introduce miners with empowerment credentials to opportunities which have the potential to deliver significant returns to many," acting De Beers CEO Barend Peterson said.

Before ending in 1971, the mine operated for 100 years and left more than 13 million tons of mineral resources in tailings. 

The Jagersfontein community would be the sole beneficiary of a community trust which would hold a 10% equity interest in the consortium's assets.  The community trust has yet to be established.  Members of the consortium as well as members of the local community would be selected as trustees. The Consortium has been committed to facilitating a skills transfer to members of the community. Ultimately, they'd like to source skilled labor from Jagersfontein.

Superkolong has met all of De Beers' standards.  They have technical competence, available funding to develop the new processing operation, BEE equity participation, employment creation, and significant community based initiatives.

Related Articles: