De Beers Sales Jagersfontein Diamond Mine in SA

(IDEX Online New) - De Beers has sold today (Tuesday) all of the assets of the Jagersfontein diamond mine to the Superkolong Consortium, a BEE holding company for a number of mining operations including alluvial diamond operations.

One of the South African mine’s important assets is its tailings. The mine operated from 1870 to 1971 producing a tailing mineral resource of just over 13 million tons at an average grade of 12.8 cpht.

De Beers Consolidated Mines Ltd (DBCM) said that the technical, economic, community and other criteria set by De Beers were met, including available funding to develop the new processing operation and employment creation in an area where mining ceased almost 40 years ago.

DBCM Acting CEO Barend Petersen said that “De Beers, with some determination to do the ‘right thing’ (…) has concluded another transaction to introduce miners with empowerment credentials to opportunities which have the potential to deliver significant returns for many.”

The Jagersfontein community is to be the sole beneficiary of a soon-to-be established Community Trust. The Trust deed will restrict outflows from the Trust to credible community-based initiatives presented by community bodies that demonstrate a sufficient level of internal organization and governance as managed by the Trustees, who will be drawn from the local community and the new owners.

The Community Trust will hold 10 percent equity ownership in the holding company that has acquired the company’s assets.

Further, the Trust will, on formation and registration, receive R20 million ($2.8 million) in cash for investment and, after due process, expenditure on community benefiting projects.

Thirdly, the Trust will have a deferred right to an amount of R30 million ($4.3 million), which will accrue interest over time and contribute to the future financial position of the Community Trust. 

The Superkolong consortium has also made a commitment to facilitate skills transfer to the members of the community, with a view to ultimately sourcing skilled labor from Jagersfontein.

The mine is known for being the source of the 972 carats Excelsior diamond.