The Steinmetz Diamond Group of Companies is looking to float its diamond mine in Sierra Leone on the Hong Kong Stock Exchange.
The founder of the group Mr Beny Steinmetz spoke with the Financial Times and said that the listing would not include any part of the Steinmetz Group but would be a different diamond mining unit.
A subsidiary of the group known as Octea currently owns the Koidu mine in Sierra Leone. The initial public offering on the Hong Kong Stock Exchange is likely to raise between $400 to 600 million. This would give the diamond mine a value in the range of $2 to 3 billion.
The mine is expected to produce about 500,000 carats worth of diamonds this year. The mine already lists Tiffany & Co amongst its clients. The initial public offering is likely to be made in the second half of the year. It would make Octea the first diamond miner to list in Asia.
The diamond business is not new for Beny Steinmetz whose family has been in the business for decades. Steinmetz Diamond Group is one of the largest clients of De Beers who buys rough diamonds and cuts them before selling them to other jewellery manufacturers. The family business has also diversified into iron ore, oil and gas.