Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Business Day reports De Beers expects its South Africa unit to produce 6.5 million carats this year, 1 million less than last year as the effects of mine disposals filter down. De Beers has since 2007 sold several of its South African mines including Cullinan, Jagersfontein, Namaqualand and Finsch.
The board is expected to sign a potential R15bn ($2 billion) investment to extend the life of its flagship Venetia mine when a feasibility study ends next year – it would be the company’s biggest South African investment in decades.
Business Day reports the firm remained bullish on exploration in the country that gave birth to De Beers, which is 45%-owned by global miner Anglo American.
MINING.com reported in August De Beers has plans to put hazardous waste – and up to 1,000 prisoners – into its disused property and diamond mines in South Africa’s picturesque Namaqualand region, in the northwest of South Africa.
MINING.com reported last week until about two decades ago, De Beers effectively controlled 70% to 80% of the rough diamonds market and that the whole business was shrouded in secrecy that still persists today.
