Petra Diamonds, a leading diamond mining company, has entered into exclusive negotiations with a prospective buyer for the sale of its Koffiefontein diamond mine in South Africa.
The mine, which has been on care and maintenance since November 2022, is expected to close down in February 2024, unless a sale agreement is reached. Petra has been looking for a responsible exit from Koffiefontein since April 2022, as the mine faced operational and financial challenges.
The potential sale is subject to the approval of the Department of Mineral Resources and Energy (DMRE), as per the South African law. Petra said it would ensure that the buyer has the ability and commitment to operate the mine in a responsible way for all stakeholders, including the local community and the environment.
Richard Duffy, CEO of Petra, said: “We are mindful of our obligations towards our stakeholders at Koffiefontein when considering a potential sale, which provides an opportunity to extend the economic life of the mine beyond the responsible closure process currently underway.
“We will continue to work closely with the DMRE, community representatives and other key stakeholders to find the best way forward at Koffiefontein and remain dedicated to our environmental and social responsibilities, whether through the decommissioning and closure process, or through a potential sale.”