AFD said that De Beers proposed that the project was not viable, owing to doubts over power supplies.
After finding the terms of the mining licence that the government offered last month favourable, AFD said that it offered to buy out De Beers’ majority stake at a “generous price”, but that its offered was rejected.
“We had expected to develop AK6 with De Beers, but its agenda differs from ours,” AFD chairperson John Teeling said.
“De Beers, while not being prepared to proceed with the project on the grounds of viability is not prepared to sell to African Diamonds to allow us to proceed immediately.”
“We will build an efficient, effective, reliable mine cheaper than the De Beers model. The economics are not in doubt,” Teeling added.