DJ UPDATE: Trans Hex Talks With De Beers Over Namaqualand Mines

JOHANNESBURG, Sep 04, 2008 (Dow Jones Commodities News via Comtex) -- TRHXY | Quote | Chart | News | PowerRating -- (Adds comment from De Beers.)

South African diamond producer Trans Hex Group Ltd. (TSX.JO) Thursday said it is in exclusive talks regarding De Beers Consolidated Mines Ltd.'s Namaqualand Mines unit.

The discussions relate to Namaqualand's mining and processing operations, the Cape Town-based company said in a statement to the Johannesburg securities exchange.

De Beers, a unit of Luxembourg-headquartered De Beers SA, confirmed the discussions and said they may lead to further negotiations on the future of the mine.

Namaqualand is the largest alluvial diamond mine in South Africa, with production in 2008 projected to be about 330,000 carats.

De Beers in February 2007 said it was committed to introducing a mining company with black empowerment credentials to the mine, and to supporting the possible consolidation of diamond mining assets in the region.

The company has in the last couple of years sold several assets in South Africa, including the Koffiefontein mine and underground operations at Kimberley mines. Earlier this year it concluded a deal to sell the historic Cullinan mine to a consortium led by Petra Diamonds Ltd. (PDL.LN).

De Beers SA, the world's largest producer of diamonds, is 45% owned by Anglo American PLC (AAUK), 40% by the Oppenheimer family and 15% by the government of Botswana.

Trans Hex, listed on the JSE and Namibian Stock Exchange, has operations in and off the coast of South Africa and in Angola. At 0820 GMT, its stock was trading 0.05 rand, or 0.6%, higher at ZAR8.80.

Company Web sites: www.transhex.co.za

www.debeersgroup.com

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=kXPiw57%2F7E9zVOtnhl1Y5g%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

09-04-08 0441ET

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index