De Beers Consolidated Mines (DBCM) will sell the Cullinan diamond mine as a going concern to the Petra Diamond Cullinan Consortium (PDCC) for R1 billion ($148 million).

DBCM explained that PDCC was chosen after a long selection process designed to find the buyer that would ensure the long-term sustainability of Cullinan. Factors taken into account included BEE credentials, as well as its socio-political focus.

De Beers said the sale reflects continued realignment of its mining portfolio and a business model that no longer focuses on maximizing market share of production.

PDCC consists of Petra Diamonds Limited, Saudi-based investment company Al Rajhi Holdings and their empowerment partner, Thembinkosi Mining Investments. The shareholders of Thembinkosi are Sedibeng Mining, Namoise Mining, Umnotho weSizwe Group and a Petra Employee Share Trust to ensure that all Petra employees benefit from the mine’s success.