Mining and exploration activity in the diamond sector is showing signs of flagging, in line with the rest of the commodities sector, with notices from three companies this week that they were curtailing operations in southern Africa.
The agreement between DeBeers and South Africa's State Diamond Trader will reshape the nation's market for rough diamonds and looks to be a portent of things to come across the range of mineral and energy resources.
The main advantage for Diamond Core shareholders is that they will diversify South African exposure and be part of a group with global capital access. For BRC shareholders, the merger offers nearer-term production.
BHP is driving forward its joint venture diamond projects in Angola and the Democratic Republic of Congo amid predictions that more than half of the world's diamond supply will come from sub-Saharan Africa.