African Diamonds in gem of a deal with De Beers

JOHN TEELING’S African Diamonds has linked up with De Beers, the South African group that controls 60% of the diamond market, to explore Botswana for the gems.

The deal is a major boost for tiny African Diamonds, which holds several licences to explore for diamonds in Botswana.

It has formed a joint venture company with De Beers holding 51% of the shares and will fund the exploration of new mines. Depending on the size and quality of any diamond find, De Beers will increase its stake in the joint venture company and its profits.

Mr Teeling said yesterday that the deal was "an outstanding opportunity" for African Diamonds. "We know that we have good ground in Botswana and our exploration to date has produced a number of specific targets. As a result, we had interest from a number of potential partners, but none can match De Beers. They have unrivalled knowledge of diamonds and a wealth of exploration data built on 40 years' experience and commitment to Botswana."

Mr Teeling said that African Diamonds management team will be actively involved in the programme on a consultancy and advisory basis.

"We believe that our ground has the potential for large gem quality mines and they will be the targets of our joint venture," he added.

"The potential in Botswana is immense. We are fortunate to have obtained excellent ground on which we have good exploration results. We now have a partner with the resources to realise the potential on our licences. This combination offers an exciting future." De Beers has annual sales of $5.5 billion.