De Beers Chooses South African Cullinan Mine Bidders

De Beers announced on Friday that it has selected the bidders interested in purchasing the Cullinan mine in South Africa. The mining company has not made public the identities of the potential buyers. The sale is due to be completed in late 2007 or early 2008.

According to website Miningmx, possible buyers include Rio Tinto and London-listed Petra Diamonds.

The bidders will now begin a due diligence process, receiving information, and being allowed visits and inspections of the mine, the company said in a statement, as reported by Reuters.

"Following the conclusion of the due diligence process, invited bidders will be required to submit binding offers for Cullinan Diamond Mine following which DBCM [De Beers Consolidated Mines] will enter into negotiations with one or more of the invited bidders," said the statement.

De Beers announced in February that it was planning on selling the loss making mine. At the time, it said that it wanted to sell it as a going concern, limiting the need for any change in the number of employees working at the mine.

The Cullinan Mine is famous for having produced the largest gem quality diamond ever found – the 3,106.75 carat Cullinan Diamond, which was discovered in 1905.