An international mining company is in talks to buy the largest diamond producer in the world for $US4 billion.
Key points:A group of Australian mining companies are in talks with Chinese firms to buy Diamond Fields for $4 billionKey points China wants to control the market for minerals in the Middle East and AfricaSource: RTE news articleChina wants to use its global market of more than $US500 trillion to dominate the diamond industry, according to a study by the US think-tank Wood Mackenzie.
The company is looking to buy a major diamond producer for $3.2 billion, while a consortium of Australian companies are also in talks.
Key facts:The group of mining companies would include Glencore and BHP BillitonGoldman Sachs, which owns shares in Diamond Fields, is a major investor in the Australian company.
The consortium includes Chinese firms CITIC, CITIEX and CNMI.CITIC is a subsidiary of CITEX, which is also a major shareholder in Diamond Field.BHP Billitons shares have lost about 40 per cent of their value in the past year.
China has been looking to control diamond prices for more than a decade, and its mining sector is the world’s second-biggest.
The World Bank has said that China has the world the largest gold reserves.
In 2016, it set a target of producing 3.5 tonnes of gold a year by 2025.
It has also said that it aims to increase its share of the world diamond market by 30 per cent.