Anglo American: De Beers JV With Namibia Approves New Vessel
May 16 2019 - 3:06AM
Dow Jones News
By Oliver Griffin
Anglo American PLC (AAL.LN) said Thursday that a joint venture
between its majority-owned De Beers diamond mining business and the
government of Namibia has approved the construction of a new
diamond-recovery vessel for its fleet.
The diversified mining company said the net cost of the new
vessel will be $234 million. It will become the seventh ship in the
Debmarine Namibia fleet and is expected to begin production in
2022.
Bruce Cleaver, CEO of De Beers, said: "Some of the highest
quality diamonds in the world are found at sea off the Namibian
coast. With this investment we will be able to optimize new
technology to find and recover diamonds more efficiently and meet
growing consumer demand across the globe."
The new ship is expected to add 500,000 carats of diamonds to
annual production, representing a 35% increase of Debmarine
Namibia's current levels.
Mark Cutifani, CEO of Anglo American, said the investment offers
a three-year payback, an initial rate of return of more than 25%,
and a margin on earnings before interest, taxes, depreciation and
amortization of more than 60%.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
May 16, 2019 02:51 ET (06:51 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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