Petra Finds Potential Buyer for Shuttered Mine

Petra Diamonds has entered into an agreement to sell its Koffiefontein mine in South Africa after trying to offload it for nearly two years.

The company will need to agree to terms with the purchaser and will then require approval from the country’s Department of Mineral Resources and Energy (DMRE) before a sale can take place, Petra said Wednesday.

In the meantime, the miner plans to continue transitioning the deposit toward full shutdown, expecting to submit its closure application in February. The company will withdraw the request only once the sale is complete, it explained.

The miner first announced its intention to sell the asset in April 2022. While the site still held approximately 5.25 million carats, it noted at the time, mining it was not economically viable for Petra and might be more feasible for another owner. In November of that year, it put the mine on care and maintenance, disclosing that the company had been taking losses on it for several years.

“We are mindful of our obligations toward our stakeholders at Koffiefontein when considering a potential sale, which provides an opportunity to extend the economic life of the mine beyond the responsible closure process currently underway,” said Petra CEO Richard Duffy on Wednesday. “We will continue to work closely with the DMRE, community representatives and other key stakeholders to find the best way forward at Koffiefontein, and remain dedicated to our environmental and social responsibilities, whether through the decommissioning and closure process, or through a potential sale.”

Main image: The Koffiefontein mine. (Petra Diamonds)