Petra has appointed Questco Corporate Advisory (“Questco”) to manage the disposal process on its behalf
Petra Diamonds is an independent diamond mining group and a supplier of gem quality rough diamonds. (Credit: Dimitris Christou from Pixabay)
Petra Diamonds Limited (“Petra”, the “Company” or the “Group”) announces that, in conjunction with its Black Economic Empowerment (BEE) partners, Kago Diamonds (Pty) Ltd and Itumeleng Petra Diamonds Employee Trust (IPDET), it is exploring a responsible exit from its investment in the Koffiefontein diamond mining operations in South Africa.
Following the conclusion of the Business Re-engineering project, which Petra announced in its interim results, Petra has updated its plan for the Koffiefontein mine, which has a current mine plan to FY 2025. A process of right-sizing the operation, which is likely to involve a reduction in employee headcount under Section 189A of the Labour Relations Act, 66 of 1995, has commenced. This process aims to provide for sustainable operations at Koffiefontein until the end of Petra’s mine plan.
Given the gross resource base of c. 5.25 million carats as at 30 June 2021, including c. 1.11 million carats in the indicated resource category associated with underground resources, it may be feasible for another owner to extend the mine’s life. The focus of this disposal process will be to identify a technically and financially suitable buyer that could potentially unlock further value from Koffiefontein.
In the event that a suitable buyer is not identified through this process, Petra remains committed to operate the mine responsibly in accordance with its current life of mine plan before proceeding with a decommissioning, rehabilitation and closure programme.
It should be noted that the disposal process will run in parallel to the Section 189A process currently underway and does not in any way impact or alter it, and vice versa.
Petra has appointed Questco Corporate Advisory (“Questco”) to manage the disposal process on its behalf. All parties interested in participating in the disposal process are invited to contact Questco to register their interest.
Source: Company Press Release