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De Beers is Set to Close Oldest Mine

Posted on: Tuesday, 26 July 2005, 18:00 CDT

Jul. 26--De Beers is to wind up production at the world's oldest diamond mine by the end of the year.

The group, 45pc owned by Anglo American, said 1,000 jobs would be lost as it closed its mine in Kimberley in South Africa.

The mine dates from the 1860s and its resources are dwindling and costs spiralling.

Analysts fear the move could devastate the town, once said to have had more millionaires per square foot than anywhere else.

Also facing the axe is the famous Cullinan mine, whose stones decorate the Crown Jewels. It is deep in the red.

De Beers said the first half had been less than glittering, as costs rose and it took a currency-related hit. Interim profits were $576m, down from $585m last time.

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Source: Daily Mail

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