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De Beers to Shut Voorspoed Mine
Jul 31, 2018 10:12 AM
By Rapaport News
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RAPAPORT... De Beers will close its Voorspoed mine in South Africa,
after an extensive search failed to turn up a suitable buyer, it said Tuesday.
The company’s South Africa business, De Beers Consolidated
Mines (DBCM), began looking for a buyer for the asset last year, after
determining that a lower-cost operator would have a better chance of maximizing
its value.
“We were committed to ensuring that any potential future
operator would not only have the required technical and financial capability,
but also values that are aligned with those of DBCM,” said Phillip Barton, CEO
of DBCM.
“Unfortunately, we have not been able to identify a bidder
that met the necessary criteria, and so we have reluctantly taken the decision
to close the operation in a responsible manner, as it is no longer economically
viable for DBCM to operate the mine,” he continued.
While De Beers has stated its intention to close the mine, the
Department of Mineral Resources (DMR) asked the
miner to manage the closure alongside a separate process during which the DMR
will conduct a search for a potential operator to acquire and run the mine.
The search will run from August 1 to 31. Failing an
appropriate offer, the mine, which is in
Kroonstad, Free State, will close by the end of the year.
Voorspoed is one of the miner’s two South African projects.
The second, Venetia mine, is located in Limpopo Province. The company has
recently invested $2 billion to transition that asset to an underground mining
venture, which will extend its operating life into the 2040s.
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Tags:
DBCM, De Beers, De Beers Consolidated Mines, Department of Mineral Resources, DM, Phillip Barton, Rapaport News, Venetia mine, Voorspoed, Voorspoed mine
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