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De Beers Group today announced it has entered into a definitive agreement for the sale of an iron ore royalty right related to the Onslow Iron project in West Pilbara in Australia, as part of its focus on streamlining the business and divesting non-core assets in support of its Origins strategy.
Taurus Funds Management will acquire the subsidiary company, De Beers Exploration Australia, that owns the royalty for an upfront cash consideration of US$125 million and up to US$25 million of deferred consideration. The sale is expected to close in Q4 2024, pending customary closing conditions.
De Beers Group’s ownership of the iron ore royalty right results from its historical global exploration activities. While De Beers did not discover any economically viable diamond deposits in Australia as a result of its exploration programme, its exploration ground did contain an iron ore deposit and that ground was subsequently sold for cash and a royalty right. With the iron ore deposit now developed, De Beers is taking the opportunity to sell its royalty right for value.
De Beers Group CEO Al Cook said: “As part of our Origins Strategy we committed to streamlining the De Beers business. We have already seen significant progress in reducing our overhead costs by reshaping our workforce in support of the new strategy, and the sale of this royalty right continues the process of business streamlining as we exit this non-core asset at the right time and for value. With a simpler and more efficient corporate structure, we will sharpen our focus on our core business of producing the world’s most beautiful natural diamonds and bringing them to market through the most value-adding channels.”
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About De Beers Group
Established in 1888, De Beers Group is the world’s leading diamond company with expertise in the exploration, mining, marketing and retailing of diamonds. Together with its joint venture partners, De Beers Group employs more than 20,000 people across the diamond pipeline and is the world’s largest diamond producer by value, with diamond mining operations in Botswana, Canada, Namibia and South Africa. Innovation sits at the heart of De Beers Group’s strategy as it develops a portfolio of offers that span the diamond value chain, including its jewellery houses, De Beers Jewellers and De Beers Forevermark, and other pioneering solutions such as diamond sourcing and traceability initiatives Tracr and GemFair. De Beers Group also provides leading services and technology to the diamond industry in the form of education and laboratory services via De Beers Institute of Diamonds and a wide range of diamond sorting, detection and classification technology systems via De Beers Group Ignite. De Beers Group is committed to ‘Building Forever,’ a holistic and integrated approach for creating a better future – where safety, human rights and ethical integrity continue to be paramount; where communities thrive and the environment is protected; and where there are equal opportunities for all. De Beers Group is a member of the Anglo American plc group. For further information, visit www.debeersgroup.com.