After exploiting diamonds in South Africa for some 120 years, De Beers has finally bowed to the new regulations of the Pretoria government and Tuesday announced the proposed sale of 26% of its South African operations in a black empowerment deal, saying it "the most significant change of ownership since its formation in 1888".

De Beers and Ponahalo Investment Holdings signed a memorandum of understanding relating to the sale of a 26% state in De Beers Consolidated Mines (DBCM). The stake in DBCM will be transferred to Ponahalo in a deal worth R 3.8 billion subject to approval of South Africa’s Reserve Bank. Further provisions also included Ponahalo getting the required finance for the deal. The deal is in line with South Africa’s mining charter that demands a percentage of black ownership. Some 50% of Ponahalo will be owned by De Beers’ South African employees and pensioners through trusts. In terms of South Africa’s mining charter, 15% of mining companies have to be black-owned in the medium term and 26% in the longer term.