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.
Could Sierra Leone, the African nation whose decade-long civil war funded by booty from diamond mines bore the term “blood diamonds,” be going legit. when it comes to the mining of diamonds?
Reuters reports that Koidu Holdings, the owner of the country’s only open-pit diamond mine, is considering a public listing that could raise $400 million for funding an expansion.
The story quotes Koidu CEO Jan Joubert confirming that a possible IPO is under discussion; if it happens, Koidu Holdings would be the first Sierra Leone company ever to go public.
Media reports say the company would likely be floated on the Hong Kong Exchange, where Chinese interest in African diamond mining is high despite the volatility normally associated with it.
The Koidu operations produces 10,000 carats per month and sells 60% of its output to Tiffany’s, Reuters said.
