De Beers: Voorspoed Mine in South Africa to be Sold

Mining giant De Beers is putting its Voorspoed mine in Kroonstad, Free State, South Africa, up for sale.

"After evaluating a range of options, the decision to place Voorspoed mine on the market has been taken to provide the opportunity for responsible lower-cost operators to employ a different operating model that could potentially extend the mine’s operating life beyond 2020, thereby contributing to the host community through continued employment opportunities and economic activity," De Beers Consolidated Mines (DBMC), its South African arm, said.

"Potential buyers will be required to exhibit a record of success technically and financially, and to meet all applicable regulatory and social requirements while economically and sustainably operating the mine.

Phillip Barton, CEO, De Beers Consolidated Mines, said: "We believe the most responsible course of action is to give other lower-cost operators the opportunity to purchase the mine and potentially extend its life, as this will maximize the benefit for the community and the mine’s workers.”

The Standard Bank of South Africa Limited has been appointed as financial adviser to De Beers on the proposed disposal process of Voorspoed mine.

De Beers operates the Venetia mine in Limpopo Province in the country and is making its largest ever investment in South Africa with an approximate $1.4 billion project to take the mine underground.