Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

De Beers South African Gem Trading Stake Moves to Black Partner

July 8 (Bloomberg) -- De Beers said a black empowerment group has gained a 26 percent stake in its South African diamond sales business five months before a government deadline to compensate for disadvantages caused by the apartheid system.

De Beers Consolidated Mines, the South African mining business of the world’s largest diamond producer, bought the local sales unit for about $230 million from its parent, De Beers said in a statement today. The deal means that black empowerment group Ponahalo Holdings Ltd., which owned 26 percent of the mining operation, now also has a 26 percent stake in the trading arm.

The country enacted a Mining Charter in 2004, compelling operators to sell 26 percent of their local assets to black South Africans by 2014 as a way to compensate for the wrongs suffered during white segregationist rule, which ended in 1994. Ponahalo bought its stake in the mining business in 2006.

De Beers’ local sales unit, called De Beers Sightholder Sales South Africa and based in Kimberley, sells the company’s production at 10 events a year, known as sights. De Beers’ operations in the country accounted for about 4.7 million carats last year out of a total 31.2 million mined by the company. The Botswana unit produced 22.7 million carats.

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, founded more than 120 years ago.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editors responsible for this story: John Viljoen at jviljoen@bloomberg.net Alex Devine

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.