Petra Diamonds Secures Approval for Koffiefontein Mine Sale

Petra Diamonds has received the green light from the South African government to proceed with the sale of its Koffiefontein mine. The Department of Mineral and Petroleum Resources (DMPR) has granted unconditional consent for the transfer of ownership to Koffiefontein Holdings (Pty) Ltd, an affiliate of the Stargems Group.

The sale is expected to be finalised by the end of October 2024, bringing an end to Petra’s involvement in the mine. The company had previously announced plans to place the mine on care and maintenance and eventually close it due to operational challenges.

Petra’s Chief Executive Officer, Richard Duffy, expressed satisfaction with the outcome, stating, “Since taking the difficult decision to put the Koffiefontein mine on care & maintenance and planning for closure of the mine, Petra has remained committed to exploring a responsible exit of the asset. The grant of the S11 consent by the DMPR will allow the Koffiefontein mine to continue with economic activity under new ownership. We believe this is the best possible outcome for all stakeholders involved and I would like to thank the DMPR for its ongoing support in the approval process.”

The transaction is anticipated to save Petra between $15 and $18 million in closure-related costs, a positive development for the company’s financial position.

Subscribe to our Newsletter

Discover the latest collections, news, and exclusive launches from us.