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I think this is a great move because the company is planning to generate more capital through the sale of some of its production operations. De Beers…
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Opinion Column Dear Editor, I am writing to contribute to an article that was done by John Miller and Alex MacDonald concerningDe Beers’ sale of Diamond. I think this is a great move because the company is planning to generate more capital through the sale of some of its production operations. De Beers is among the South African diamond-mining companies that dominate the market (Miller and MacDonald, n. p). It would be essential to diversify business in order to concentrate on new ventures. The authors did an insightful piece that highlights the readers about the diamond industry in Africa. The Kimberly Mines, which is up for sale, deals with the extraction of diamond for export purposes (Miller and MacDonald, n. p).
However, the article does not offer cost analysis of the mine in regards to the expected revenues and investor benefits. This is vital to for more buyers to invest to boost the recovery business in the African state. It indicates the aspects that hinder the management of De Beers from managing several mines in the country. The environmental analysis is appropriate because Kimberly Mines is located in a prime area where transportation and extraction is efficient (Miller and MacDonald, n. p). The function of the mine in pulling stones from the old-mine can be converted into sustainable utilization within the diamond industry (Miller and MacDonald, n. p). For instance, the stones are essential for construction purposes by other users. This is because the contractors cannot easily access the minerals and have to dig deeper to trace the diamonds in the derelicts. I like the article and would encourage the writers to consider follow-up of the sale. Thank you so much.
Work Cited
Miller, John and MacDonald, Alex. “De Beers to Sell Diamond-Recovery Business in South
Africa.” The Wall Street Journal. Web, 2015. Available at
< http://www.wsj.com/articles/de-beers-to-sell-diamond-recovery-business-in-south-africa-1432231625>Read More
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