De Beers in Talks to Reach Black Empowerment Deal for Ndowana

De Beers says it is negotiating with South African black empowerment firm Mvela Resources to change the terms of their Ndowana shareholders agreement to create a 51 percent stake for Mvela and 49 percent for De Beers for areas covered by state-owned mineral rights.

The Ndowana joint venture prospects for diamonds in the Limpopo and Mpumalanga provinces.

Under the Minerals and Petroleum Development Act 2004, holders of old order mineral rights have the sole and exclusive right to apply for exploration permits for a period of 12 months from May 1.

The government said that during this period it requires applications for exploration permits in respect of state-owned mineral rights to reflect a Black Economic Empowerment component of not less than 51 percent.

De Beers executive Bill McKechnie said: “De Beers supports the government’s principle of increased involvement by historically disadvantaged South Africans in South Africa's mining industry.

“The Act is necessary for this industry and for the country, and through this joint venture we hope to bring new discoveries to account using our combined skills and resources in our exploration programs,” McKechnie added.