DeBeers to sell Kimberly diamond mine

May 22, 2015

DeBeers Group announced that it will put its Kimberley diamond mines in South Africa up for sale, noting that the operation no longer fits the company's strategic plan.

Reuters reported that De Beers said it hoped to conclude the sale process "in a matter of months".

The company, which has been mining at Kimberley for more than a century, said it had invested in the mine to 2018 and that the new owners would need only stay-in-business capital, potentially extending life of the mine to 2030.

De Beers, Anglo American Plc's second-most profitable unit, produced 722,000 carats of diamonds at Kimberley in 2014.

Anglo American said last month that it planned to cut diamond production this year in response to lower prices, as diamond demand has slowed since late 2014 due to middlemen who buy rough stones struggling with a stronger dollar and liquidity problems.

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