Diamond company Petra is exploring a responsible exit from its investment in the Koffiefontein diamond mining operations.
The exit would be carried out together with its black economic empowerment partners Kago Diamonds and its Itumelang employee trust, the London Stock Exchange-listed company has stated.
Petra expressed the view in a release to Engineering News & Mning Weekly that it might be feasible for another owner to extend the mine’s life. As at June 30, 2021, its gross resource base of 5.25-million carats included 1.11-million carats in the indicated resource category, associated with underground resources.
The focus of this disposal process, the company said, would be to identify a technically and financially suitable buyer that could unlock further value from Koffiefontein.
Petra has appointed Questco Corporate Advisory to manage the disposal process and parties interested in participating in the disposal process have been invited to register their interest.
Koffiefontein’s current mine plan extends to the company’s 2025 financial year, with a process under way involving employee reduction under Section 189A of the Labour Relations Act to attain sustainable operations until then.
In the event of a suitable buyer not being identified, Petra said it remained committed to operating the mine responsibly in accordance with its current life-of-mine plan before proceeding with a decommissioning, rehabilitation and closure programme.
Disposal will be run in parallel to the Section 189A process currently under way and does not in any way impact or alter it.