De Beers to sell 50% stake in Botswana’s Morupule coal mine
De Beers, a unit of Anglo American has announced plans to sell its 50% stake in Morupule coal mine (MCM) in Botswana to the government.
The company's latest move is part of a plan by Anglo American to cut down its commodities portfolio.
Reuters quoted Minerals Development Company of Botswana (MDCB) CEO Paul Smith as saying that De Beers' stake in the mine will be transferred to company.
With the acquisition of De Beers' stake in MCM, the government's ownership in the mine will be 100%.
After implementation of the deal, the assets of the mine will be transferred to the newly formed MDCB.
MDCB did not disclose the price of the stake.
The stake in MCM is owned by De Beers through Debswana Diamond Mining, which is a joint venture with the Government of Botswana.
MCM, which is located on the outskirts of Palapye, Botswana, commenced production in 1973 as a subsidiary of Anglo American to supply coal to Bamangwato Concessions (BCL) and the BPC power plant in Selebi Phikwe.
The mine has the capacity to produce 3.2 million tonnes of coal per year.
This year, Anglo American closed its Mmamabula coalfields in Botswana as part of its plans to dispose certain assets.
The sale excluded De Beers platinum, as well as the company's copper units.