De Beers Group has decided to place its Voorspoed mine in Kroonstad, Free State, South Africa on the market, and has invited expressions of interest from potential buyers. The Group said it has taken this step after evaluating a range of options in the hope that operators with a different business model could potentially extend the mine’s operating life beyond 2020.

Such an extension would contribute to the host community through continued employment opportunities and economic activity, De Beers said. The Group also operates the Venetia mine in Limpopo Province and is currently making its largest ever investment in South Africa with a ZAR20 billion project to take the mine underground.

Potential buyers for Voorspoed should have a record of success technically and financially, and be able to meet all applicable regulatory and social requirements while economically and sustainably operating the mine, the Group added.

Phillip Barton, CEO, De Beers Consolidated Mines, said: “I am very proud of the Voorspoed mine team, who have contributed so much to the operation’s success to date and ensured it has always operated to the highest standards of environmental and social performance. However, based on our experience with other operations, we believe the most responsible course of action is to give other lower-cost operators the opportunity to purchase the mine and potentially extend its life, as this will maximise the benefit for the community and the mine’s workers.”

The Standard Bank of South Africa Limited has been appointed as financial adviser to De Beers on the proposed disposal process of Voorspoed mine.

Pic caption: At the Voorspoed mine in South Africa