De Beers Not Selling South African Marine Rights

(IDEX Online News) – With sale of the Namaqualand Mines, diamond giant De Beers is continuing its policy of selling older and less productive mines in South Africa. However, the original agreement that included the sale of a marine asset to Trans Hex has been changed.

On May 6, 2011, De Beers Consolidated Mines (DBCM) announced an agreement to sell the Namaqualand Mines to the Trans Hex subsidiary, Emerald Panther Investments 78 (EPI). The agreement included the Buffels marine mining right.

Yesterday (Wednesday), the sides announced an amended sales agreement. DBCM will retain the Buffels marine mining right and Trans Hex will acquire the balance of the Namaqualand Mines mining and prospecting rights and associated environmental rehabilitation liabilities.

The amended agreement is valued at R166 million ($20.5 million).

EPI could take over ownership of the Buffels marine mining right within the next four years and would have a further two-year pre-emptive period to acquire it should a transaction not transpire because of the option arrangement.

The transaction is subject to approval by the shareholders of Trans Hex, competition authorities and other regulatory bodies.

De Beers said that DBCM, as part of its continued commitment to Namaqualand, "view[s] this as a very positive development for all stakeholders and communities in the region."