De Beers Sells South African Mine

De Beers has sold its Finsch diamond mine in South Africa to
Petra Diamonds for approximately $200 million, it announced Jan. 21.

In 2007, Petra bought De Beers’ Cullinan and Kimberley
mines
, both in South Africa.

A Petra release said Finsch is South Africa’s second
largest diamond mine by production. It will become the eighth diamond mine in
Petra’s portfolio.

“Finsch is a major diamond producer,” said Johan Dippenaar,
CEO of Petra. “This acquisition will serve to immediately more than double our
current production.”

Phillip Barton, CEO of De Beers Consolidated Mines, the
company’s South African division, added: “The sale of Finsch Mine reflects the
continuing evolution of DBCM’s mining portfolio. It will enable us to prioritize
capital to invest in growth opportunities that best suit our criteria, and to
sustain a strong diamond mining business in South Africa for the future.”

DBCM will continue to manage Finsch until the sale has been
finalized.