De Beers Unfazed by South African Moves to Nationalize Mines

South Africa may be scaring its mining community with talks of the nationalization of mines but global diamond mining and trading giant De Beers is not bothered. The South African unit of the world’s largest diamond producing company is confident that a 10 billion Rand mine expansion project will be approved by the government.

The De Beers Consolidated Mines Company wishes to expand its underground mine operations at the Venetia mine. The extension at its flagship mine will also prolong the life of the mine from the currently expected 2021 to 2046. The executive chairman of the company Barend Petersen said on Wednesday that the feasibility study has been approved and the final decision may be taken by the middle of this year.

Mr Petersen added that the future of De Beers in South Africa depends on Venetia. He added that they were very confident of a positive decision. He said that he expected the diamond prices to remain stable or even rise as they were seeing a growth in demand for diamonds from emerging markets. He was speaking on the sidelines of an African mining conference.

De Beers is co owned by Anglo American 45 %, by the South African Oppenheimer family 40% and by the Botswana government 15%.