Petra Completes Sale of Koffiefontein Mine
October 09, 24
(IDEX Online) - Petra Diamonds says the sale of its loss-making Koffiefontein mine, in South Africa, to Dubai-based Stargems, has been approved and will take place by the end of this month.
UK-based Petra bought Koffiefontein from De Beers in 2007, and it has been on care and maintenance since November 2022.
The sale will save Petra an estimated $15m to $18m in closure-related costs.
"Since taking the difficult decision to put the Koffiefontein mine on care and maintenance and planning for closure of the mine, Petra has remained committed to exploring a responsible exit of the asset," said Petra CEO Richard Duffy.
"We believe this is the best possible outcome for all stakeholders involved and I would like to thank the DMPR (Department of Mineral and Petroleum Resources) for its ongoing support in the approval process."
In 2022 Stargems bought two other South African diamond mines - Jagersfontein Holdings and Rooipoort Holdings - from Luxembourg-based Reinet Investments.
Koffiefontein 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.
Pic courtesy Petra shows Koffiefontein mine.