AFRICAN Diamonds is this week expected to announce the appointment of James Campbell, general manager for group exploration at mining giant De Beers, as its managing director.

Campbell, who will work under chairman John Teeling, is also expected to become deputy executive chairman of West African Diamonds, an offshoot of African Diamonds. The new company will list on the Alternative Investment Market on December 4 at 20p a share.

Campbell’s decision to move from one of the world’s biggest diamond mining companies to an exploration group with a market value of £102m (€150m) will surprise many in the industry. It is understood that Campbell will receive more than 1m share options, split between the two companies.

African Diamonds’ main project is the AK6 diamond mine in Botswana, a joint venture with De Beers, which owns 5.96% of African Diamonds’ equity. Campbell will have the task of transforming African Diamonds from an exploration group to a fully fledged mining company.

Exploration indicates that AK6 could become one of the world’s biggest diamond mines. A feasibility study at AK6 is expected to be completed next summer with African Diamonds applying for a mining licence from the government in Botswana.

Mining would not begin until late 2008 at the earliest. Campbell will also find other projects for the company.

Shareholders in African Diamonds will hold two-thirds of the stock of the new company. De Beers is expected to place all its shares with other institutions.