Proposed Alexkor Diamond Mine Consolidation Draws Community Ire

A De Beers announcement on the proposed consolidation of the Alexkor mine on South Africa’s west coast has been “misconstrued”, said company spokesman Tom Tweedy. Tweedy was responding to a statement by the Richtersveld community saying it was contemplating a court challenge to the recently announced proposal to consolidate the West Coast operations of Alexkor and De Beers Consolidated Mines’ (DBCM) Namaqualand Mines.

On March 1, members of the Richtersveld community issued an ultimatum to the government over the proposed deal, saying they were angry because they had not been consulted, according to South African media reports.

The Richtersveld Sida hub Communal Property Association (CPA) demanded that the country’s Minerals and Energy Minister, Buyelwa Sonjica, hand over a copy of the agreement with De Beers, details of which have not been made public, otherwise it would pursue legal action, it said.

Citing an agreement signed with the DME, Tweedy said it is the intention of the company and the ministry following full consultation with affected parties, for the West Coast operations of Alexkor and De Beers Consolidated Mines’ (DBCM) Namaqualand Mines to be amalgamated into a new, stand alone diamond mining company.

This independent and empowered company will be well-positioned to capitalize on synergies that exist across both operations and will realize the full economic potential of the West Coast diamond mining industry, said Tweedy. As a first step in this process, De Beers will be issuing, through a special purpose vehicle, a 20 percent stake in its Namaqualand Mines to the DME. It is not De Beers’ intention to be the operator of this company and De Beers will dilute its stake over time, Tweedy said.

The South African Press Association (SAPA) reported that the community has been seeking the restitution of some 84,000 hectares of diamond-bearing land stretching south from Alexander Bay, plus compensation of up to R2.5 billion ($338.43 million) for diamonds removed and environmental damage caused by Alexkor’s operations.