Petra Sells Mothballed Mine to Stargems
April 11, 24
(IDEX Online) - Stargems has acquired Petra's mothballed Koffiefontein mine, in South Africa, for a "nominal cash consideration".
The loss-making deposit, which Petra bought from De Beers in 2007, has been on care and maintenance since November 2022.
Petra said Dubai-based Stargems would take on the mine's environmental rehabilitation liabilities and care and maintenance costs, and make a nominal, though undisclosed payment.
"I am pleased that the sale agreement reached with Stargems will, once completed, provide ongoing economic activity in the region," said Petra CEO Richard Duffy in a statement on Monday (8 April).
"We believe Stargems has the technical and financial capability to conduct operations in a responsible manner for all stakeholders."
The mine was expected to reach the end of its life in 2025, before operations were halted. A 2021 assessment indicated a gross resource base of 5.25m carats.
Petra said in its interim results for H1 FY 2024 that it had set aside $23.1m were made for liabilities, costs and commitments associated with Koffiefontein.
Stargems, established 40 years ago as a rough diamond trader, has since expanded into manufacturing, wholesaling, retailing tendering. And since 2022 it has been acquiring mining interests in South Africa.
It bought Rooipoort Holdings, which owns the mining rights to an alluvial diamond project near Kimberley and Jagersfontein, which was closed by De Beers in the 1970s. In September 2022 three people died at Jagersfontein when a tailings dam burst.
Pic of Koffiefontein courtesy Petra Diamonds.