As other diversified mining giants have in recent years had second thoughts about diamonds, Anglo American (USOTC: AAUKY; LSE: AAL) never appeared in doubt about its interest in De Beers – the world’s largest diamond miner by value.
The company bought out the Oppenheimer family’s 40% stake in De Beers for US$5.1 billion, more than doubling its interest to 85%, in a deal announced in late 2011. (The government of Botswana owns the remaining 15% stake in De Beers.)
With iron ore prices continuing to head lower, mining analysts at Investec Securities see diamonds as a bright spot for Anglo – and something that distinguishes it from its rivals.
“De Beers is the single most important diamond producer in the world and, in our view, the most attractive business unit within Anglo American,” write Investec mining analysts Marc Elliott and Albert Minassian in a note to clients.
Read the complete article at NorthernMiner.com/news/de-beers