De Beers today clarified that it had sold the Kimberley Mines in South Africa believing it to be the best possible way to extend the mine’s life beyond 2018, say reports in the African media. A company spokesperson was quoted as saying that the sale was discussed on multiple occasions with the local unit of the National Union of Mineworkers (NUM).

The reports said that De Beers spokesperson Tom Tweedy had further clarified that the mine was not bein closed but was being sold as a going concern, and under the South African labour laws, this means that “all employee contracts will be transferred to the new owner on terms and conditions which on the whole are no less favourable than they currently enjoy”.

It may be recalled that the NUM has called on De Beers to withdraw the sale of the Kimberley Mines to a consortium of Ekapa Mining and Petra Diamonds. The union has planned a protest march next week.

African media also reported that Tweedy had explained that the mine was at a stage of mining the remaining tailing resources and it was best if it was run by a flexible, efficient and low-cost operator. He said that under De Beers the life of the mine would have ended in 2018, but a “lower cost diamond producer should be in a position to operate Kimberley Mines more profitably” and even extend its life till 2030.

Tweedy also was reported to have said that Ekapa was selected through a bidding process, which had commenced by sending letters to 76 potential bidders.