May 21, 2015 / 2:36 PM / 5 years ago

De Beers puts Kimberley diamond mine in South Africa up for sale

A women holds an uncut diamond at De Beers headquarters in London January 17, 2011. REUTERS/Stefan Wermuth (BRITAIN - Tags: BUSINESS) - RTXWOU3

(Reuters) - Diamond miner De Beers Group said it was putting its Kimberley Mines in South Africa up for sale as the operation no longer fits the company’s strategic plan.

De Beers said it hoped to conclude the sale process "in a matter of months". (bit.ly/1dmJkxU)

The company, which has been mining at Kimberley for more than a century, said it had invested in the mine to 2018 and that the new owners would need only stay-in-business capital, potentially extending life of the mine to 2030.

De Beers, Anglo American Plc's (AAL.L) second-most profitable unit, produced 722,000 carats of diamonds at Kimberley in 2014. (bit.ly/1HwyMJ9)

Anglo American said last month that it planned to cut diamond production this year in response to lower prices, as diamond demand has slowed since late 2014 due to middlemen who buy rough stones struggling with a stronger dollar and liquidity problems.

Reporting by Abhiram Nandakumar in Bengaluru; Editing by Simon Jennings

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below