JOHANNESBURG (miningweekly.com) – JSE-listed diamond company Trans Hex would work expeditiously to finalise the R166-million acquisition of Namaqualand Mines from De Beers, as its South African operations neared their end-of-life, CEO Llewellyn Delport said on Wednesday.

“We are now nearing the end of our South African operations, which has been evidenced by the year-on-year decline in grade and production,” he said at the firm’s 2013 financial year-end presentation in Johannesburg.

Company estimates put the productive life for its South African operations, comprising the Baken mine, on the banks of the lower Orange river, and the Richtersveld operations, also in the Northern Cape, at five to seven years, although Delport believes they have ”closer to three years” left.

Overall production from the group’s South African operations for the year ended March 31 amounted to 67 115 ct – a 20.4% decline on the 84 409 ct produced in 2012.

Similarly, average grade decreased from 1.57 ct/100 m3 in 2012 to 1.05 ct/100 m3 in the 2013 fiscal year. 

Trans Hex and De Beers Consolidated Mines (DBCM) announced the Namaqualand deal in 2011, but an outstanding issue relating to the State’s 20% ownership of the operations had delayed the completion of the transaction.

“The only issue that remains outstanding is for DBCM and the South African government to reach agreement in respect of the interest in Namaqualand Mines, after which the necessary shareholder processes will be completed,” the company said.

Trans Hex on Monday said that an amendment had been made to the previously announced agreement with DBCM, which would see its 50%-held subsidiary, Emerald Panther Investments (EPI), acquiring assets and liabilities relating to Namaqualand Mines.

In terms of the amended transaction, DBCM would retain in excess of 50% of the Namaqualand Mines environmental rehabilitation liability.

The Department of Mineral Resources has approved the transfer of the applicable prospecting and mining rights in respect of Namaqualand Mines from DBCM to EPI, with all necessary statutory and regulatory approvals required for entering into and implementing the transaction having been obtained.

Trans Hex, which also owns interests in diamond ventures in Angola, on Monday posted earnings a share of 79.7c for the year – a 59.3% decrease on the 196c a share for the 2012 period.

No dividend was declared