DeBeers sells Cullinan to Petra
DeBeers announced Thursday it will be selling its famous Cullinan Diamond Mine to Petra Diamonds Cullinan Consortium for 14 million US Dollars (one billion Rand), not only that but in cash!
Petra is made up of diamond mining junior Petra Diamonds, listed on the Alternative Investment Market of the London Stock Exchange as well as the Saudi investment company Al Rajhi Holdings and Thembinkosi Mining Investments.
Petra Diamonds also has mining operations in Angola, Botswana and Sierra Leone. It is the second largest producer of diamonds in South Africa after De Beers and likely to become the first after the sale.
Petra, whose share of the acquisition price is R325-million, also acquired Dancarl mine in Northern Cape, and Koffiefontein mine, in Free State, from De Beers.
“This enables De Beers to best use our capital to invest in exciting growth opportunities and to sustain a strong diamond mining business in South Africa for the future,” said Gareth Penny, Managing Director of the De Beers Group.
“In this way De Beers is strengthening its commercial future in South Africa whilst helping to meet the government’s aspirations for a diversified, transformed South African diamond industry.” He continued.
David Noko, managing director of De Beers Consolidated Mines (DBCM), stated, “This transaction is a transformational deal for Petra and reflects the opportunities DBCM is creating for new players in the diamond industry,”
“The Cullinan Diamond Mine is one of the most illustrious diamond mines in South Africa and we are delighted to have concluded this transaction which will ensure a viable and sustainable mining operation for many years to come,” said Petra chief executive Johan Dippenaar.
“Over the last 100 years, Cullinan has played an integral part in writing the history of diamonds - giving the world its largest ever gem diamond, the Cullinan diamond, as well as many of the most famous and spectacular diamonds ever seen, including the two largest polished diamonds,” he then added.”
The Cullinan Diamond Mine, established in 1902, is is perhaps the most famous of diamond mines, in particular for the world’s largest ever rough diamond, The Cullinan Diamond, which was discovered in 1905 and weighed over 3000 carats uncut. In addition, the mine is also the world’s only significant producer of rare blue diamonds.