De Beers Canada JV partner says diamond miner in no rush to sell

Mountain Province Diamonds

21/06/2024 19:44

By Divya Rajagopal
       TORONTO, June 20 (Reuters) - The proposed spin off of
Anglo American's  AAL.L  De Beers diamond unit will take 'some
time' and the miner is not rushing to complete the split, Mark
Wall, CEO of Mountain Province Diamonds  MPVD.TO , the Canadian
joint venture partner of De Beers's Gahchu Kue mine, said this
week.
    After Anglo American rejected a $42.7 billion buyout offer
from Australian miner BHP  BHP.AX  in May, it announced plans to
sell its copper, iron ore, diamond and platinum businesses. 
    Yet the more than 100-year-old diamond miner is seeking
options for its spin off from parent Anglo American at a time of
depressed diamond prices, which analysts have said may make any
transaction tougher. A public listing or sale to a sovereign
wealth fund or other strategic investor are two possible options
for the company, according to two people aware of the
development.
    De Beers did not respond to an email query by Reuters. Anglo
said it plans to divest De Beers during the next 18 to 24
months.     
    Prices of rough diamonds have slumped by 15% to 20% since
early 2023, according to the Zimnisky Global Rough Diamond Price
Index, due to the rising popularity of lab grown diamonds and a
shift by younger consumers away from diamonds.
    Mountain Province Diamonds and De Beers own the Gahcho Kue
diamond mine in Canada's Northwest Territories (NWT). De Beers
owns two other diamond mines in Canada. 
    "I have had many discussions (with De Beers Canada). What I 
am getting is no one is rushing into anything. There is a
acceptance that this is going to take some time," Wall told
Reuters on Thursday. 
        He added that the joint venture is focused on daily
operations, including maintaining safety and environmental
standards.
  
    Earlier this month De Beers said it was prioritizing
investments in high return major projects and would pause
exploration at the Gahchu Kue and Chidliak underground mines.

 (Reporting by Divya Rajagopal; Editing by Chizu Nomiyama)
 ((divya.rajagopal@thomsonreuters.com;))