SA Government Delays Sale of Alexkor Stake
June 10, 03
The deadline on the announcement of the winning bidder of a 51 percent stake in the South African mine Alexkor passed Friday, and no news was released on the fate of the bid.
A decision was supposed to be made back in January but was postponed by the Department of Public Enterprise. In March it said the announcement would be made June 6.
To date, it is not clear if a winning bidder has been picked at all or the delay is just in the announcement. Among the bidders are Dimeng Diamonds Holding, the New Alexkor Consortium (which includes the New Diamond Corporation), Pan African Gems and Trans Hex.
Alexkor has been plagued with problems for a number of years. The drawn out privatization - part of a government attempt to privatize a group of properties, a recent lawsuit by a workers union over alleged illegal firing, mounting losses and difficult relations between the government and the former management over payments have all stood in the way of a successful diamond mining operation.