Petra Diamonds is considering selling its assets to secure enough funding to pay creditors as it struggles with the industry downturn.
The miner will undertake a “strategic review,” which will include “all potential paths to address the liquidity needs of the business,” it said last week. That includes a potential sales process in relation to the company’s assets, it explained.
The company’s board is finalizing the appointment of a financial adviser to complete the review. Meanwhile, José Manuel Vargas will step down as chair of the board and director of the company with immediate effect. Lerato Molebatsi will become board chair on an interim basis.
Petra currently owns the Cullinan mine in South Africa, the last of its four deposits. It sold the Finsch mine, also located in that country, in August, following a period in which it entered into business rescue, but failed to find a viable method to restart operations. It also offloaded the Williamson mine in Tanzania last year and its Koffiefontein site in 2024, to secure cash amid liquidity issues.
“There is no certainty as to the outcome of the strategic review,” the company added. “The board will make further announcements in due course.”
Image: The Cullinan mine processing plant. (Petra Diamonds)
