Petra Diamonds Limited has entered into a non-binding term sheet with an interested party for the potential sale of the Koffiefontein Diamond Mine in South Africa. The company has been exploring a responsible exit from Koffiefontein since April 2022, and the operation has been placed on care and maintenance since November 2022. Petra intends to transition Koffiefontein towards closure, with a closure application expected to be submitted to the Department of Mineral Resources and Energy (DMRE) in February 2024. However, this application will only be withdrawn if the potential sale is completed. If the parties are unable to agree on definitive agreements, Petra will proceed with its decommissioning, rehabilitation, and closure program.
Any sale of Koffiefontein would require the consent of the DMRE in accordance with South Africa's Mineral and Petroleum Resources Development Act. Petra is committed to ensuring that any future owner of Koffiefontein has the technical and financial capability to conduct operations responsibly. The company will provide further updates on the progress of the potential sale in due course.
Richard Duffy, CEO of Petra, stated that the potential sale provides an opportunity to extend the economic life of the mine beyond the responsible closure process currently underway. The company will continue to work closely with the DMRE, community representatives, and other stakeholders to find the best way forward for Koffiefontein. Petra remains dedicated to its environmental and social responsibilities, whether through the decommissioning and closure process or a potential sale.
Petra Diamonds Limited is a leading independent diamond mining group and supplier of gem-quality rough diamonds to the international market. The company's portfolio includes interests in three underground mines in South Africa and one open pit mine in Tanzania. The Koffiefontein mine is currently on care and maintenance in preparation for sale or closure. Petra's strategy is to focus on value rather than volume production by optimizing recoveries from its high-quality asset base. The company aims to conduct all operations according to the highest ethical standards and only operates in countries that are members of the Kimberley Process. Petra strives to generate tangible value for its stakeholders and contribute to the socio-economic development of its host countries.