DE BEERS to buy fuel from BEE groups

According to a report in Mining Weekly, De Beers Consolidated Mines (DBCM) would buy fuel worth $800 million (R5.8 billion) from three black economic empowerment (BEE) groups, over the next decade.

The fuel will be supplied to De Beers’ Venetia and Oaks diamond mines in the Limpopo province, and to the Voorspoed mine. The three oil firms have agreed to contribute to social investment and job creation in these areas.

This deal is anticipated to contribute significantly to the company’s BEE oriented procurement strategy. The policy has already achieved a 42 per cent BEE level in spending $195 million (R1.4 billion) on supplying the local mines in 2006.