De Beers Selling Historic Diamond Mine for $147 Million

De Beers, the world's largest diamond company, is selling its historic Cullinan Diamond Mine in South Africa for about $147 million, according to the Associated Free Press.

The buyer of the mine is South Africa's second-largest diamond producer, Petra Diamonds Cullinan Consortium. Petra has a strong black empowerment element, and De Beers feels that the sale "is strengthening its commercial in South Africa whilst helping to meet the government's aspirations for a diversified, transformed South African diamond industry," explains Gareth Penny, Managing Director of the De Beers Group.

The Cullinan Diamond Mine was established in 1902, and is famous for the world's largest rough diamond, The Cullinan Diamond. The Cullinan Diamond was found in 1905 and weighted over 3000 carats uncut. The mine is also the world's only significant producer of rare blue diamonds.

Petra chief executive Johan Dippenaar said, "The Cullinan Diamond Mine is one of the most illustrious diamond mines in South Africa and we are delighted to have concluded this transaction which will ensure a viable and sustainable mining operation for many years to come."