JOHANNESBURG (miningweekly.com) – JSE-listed gold-miner AngloGold Ashanti and diamond giant De Beers have formed a joint venture (JV) to explore for gold and other minerals in the ocean, the two companies announced on Monday.

The JV would initially focus on exploration, but would ultimately mine marine deposits on the continental shelf.

The AngloGold and De Beers venture’s focus would not be on diamonds, unless these occurred along with other target minerals and metals.

“By combining one of the world’s most successful gold exploration teams with the foremost authority in ocean mining and exploration, we’re creating a powerful base to tackle this new frontier,” said AngloGold Ashanti CEO Mark Cutifani.

De Beers, along with its wholly-owned subsidiary De Beers Marine and other associates within the group of companies, have developed certain skills, expertise and proprietary technology in relation to the exploration and mining of marine deposits on the continental shelf.

The establishment of this JV would allow AngloGold Ashanti to take “first-mover advantage” of the opportunity of partnering with a world leader in the field of marine exploration and mining.

AngloGold Ashanti and De Beers would establish a jointly-owned technical services company (Techco), which they intend to develop into a fully-functional marine exploration and mining services company. Techno would host all the skills, expertise and further proprietary technology that might be developed or acquired within the JV.

Techco and De Beers Marine would provide the skills, expertise, technology and facilities related to marine exploration and mining activities on the continental shelf, under various service agreements to be entered into with the various sub-JV opportunities pursued by the participants.

AngloGold Ashanti would sole fund the JV and Techco until the completion of an initial exploration period of at least three consecutive sampling seasons, or until the gold-miner had funded a total amount of $40-million.

Upon the conclusion of this period, AngloGold Ashanti would have earned-in to equivalent interests to De Beers in all the sub-JV opportunities pursued under the agreement. Following the initial exploration period, the two companies would be equal partners in the JV and, therefore, would equally fund and share in the benefits arising from the JV.

AngloGold Ashanti would hold its offshore interests in the JV through its wholly owned subsidiary, AngloGold Ashanti Marine Exploration (AGAME) and its South African and Southern African Development Community interests in the JV either directly or through a South African nominee.

De Beers would hold its interests in the JV through its wholly owned subsidiary, De Beers Group Exploration Holdings.

AngloGold Ashanti and De Beers would further seek to secure majority interests for the JV in any sub-JV that involves a third party.