De Beers Sells Stake in Gem Trading Business to Ponahola Holdings
South Africa’s largest diamond producer De Beers Consolidated Mines (DCBM) has sold a 26 percent stake in its local sales unit to black empowerment group Ponahola Holdings Ltd.
The move has been made just months before the government deadline to compensate for disadvantages caused by the apartheid system, although reports suggest the deal has been in the making for some eight years.
Ponahola acquired a 26 percent stake in DBCM for R3.7bn eight years ago and the new deal means it now has a stake in De Beers Sightholder Sales South Africa, the diamond sorting and valuation business, which holds 10 sales events a year known as sights.
It also means that De Beers has fulfilled its Mining Charter commitment to black economically empower both its mining and marketing operations.
DBCM’s largest diamond mine Venetia produces 40 percent of the country’s annual production and its other mine Voorspoed, one of the country’s newest mines is an occasional source of large and exotic coloured diamonds.
The company also helps to manage the Big Hole at Kimberly a major tourist attraction in the area and has a total of 1,007,676 hectares under licence.
Anglo American Plc owns 85 percent of De Beers after it bought the Oppenheimer family’s 40 percent stake in 2012 for $5.1 billion. Botswana controls the rest of the business, which was founded more than 120 years ago.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.