De Beers decides to close Voorspoed
No suitable bidder is found
DIAMOND producer De Beers Consolidated Mines (DBCM) yesterday said it had decided to close its Voorspoed Mine in the Free State after it failed to find a suitable bidder.
The group said the decision followed an extensive, transparent and comprehensive disposal process, which involved a rigorous due diligence exercise by the bidders to acquire the mine. It said it was unsuccessful in identifying a suitable operator that met the specified criteria.
Chief executive Phillip Barton said none of the four bidders that were interested in the mine met the criteria. “We widened our search far and wide, but we had put emphasis on the local investors,” Barton said. “Unfortunately, none of the bidders met our criteria.”
De Beers put Voorspoed up for sale in November, saying it was looking for investors that have the experience and technical skills to operate the mine, good standing in the market, the ability to invest, and strong black economic empowerment credentials.
The number of carats the Voorspoed Mine produced in a year.
The group said it would consult employees, unions, host communities and the Department of Mineral Resources (DMR) in a transparent and responsible manner, while continuing to uphold the highest safety standards at the mine