Petra Diamonds to Acquire Interest in Kimberley Mines

(IDEX Online News) – Petra Diamonds Limited has announced its acquisition of an interest in South Africa’s Kimberley Mines from De Beers Consolidated Mines (DCBM) as part of a consortium with Kimberley-based diamond tailings producer Ekapa Mining Limited.

Ekapa Minerals, the consortium’s acquisition vehicle is owned by Ekapa Mining (50.1 percent) and Petra (49.9 percent). Petra’s share of the acquisition consideration is ZAR 50.9 million (~$3.6 million).

Petra CEO Johan Dippenaar said that his company was looking forward to working with Ekapa Mining, particularly because of its strong local relationships. He added that it showed a commitment to the diamond mining future of Kimberley that was for the benefit of its employees, shareholders and stakeholders.

Ekapa expects to produce approximately 700,000 carats per year for the first three years, with predicted revenue of $65 million based on an assumed price of $95 per carat.

Ekapa Minerals said it hoped that the combination of Petra’s Underground Kimberley Mines and its expertise in existing tailings retreatment will significantly increase the life of the mine beyond the current 2018 forecast.

De Beers said that it received more than 70 expressions of interest for the Kimberley Mines, but was impressed with Ekapa Minerals, not just for its technical expertise in tailings mineral resources, but its ongoing commitment to the Kimberley region.

DCBM chairman Barend Petersen said of the deal, “We are delighted that the new owning consortium is broad-based HDSA (Historically Disadvantaged South Africans) controlled – illustrating that transformation in the South African diamond industry is steadily making progress.”

DBCM continues to operate two other diamond mines in South Africa, namely Voorspoed Mine in Kroonstad and Venetia Mine in the Limpopo Province.