Petra Diamonds
Limited
Potential exit of
Petra’s investment in Koffiefontein
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.
The closing date for registering an interest with Questco is
09 May 2022 and the contact details
are:
- Ciska Kloppers +27 82 303
4826
- Kaveshan Subramanian +27 73 201 4359
- projectoasis@questco.co.za
ABOUT PETRA DIAMONDS
Petra Diamonds is a leading independent diamond mining group and
a supplier of gem quality rough diamonds to the international
market. The Company’s portfolio incorporates interests in three
underground producing mines in South
Africa (Finsch, Cullinan and Koffiefontein) and one open pit
mine in Tanzania (Williamson).
Petra's strategy is to focus on value rather than volume
production by optimising recoveries from its high-quality asset
base in order to maximise their efficiency and profitability. The
Group has a significant resource base of ca. 230 million carats,
which supports the potential for long-life operations.
Petra strives to conduct all operations according to the highest
ethical standards and only operates in countries which are members
of the Kimberley Process. The Company aims to generate tangible
value for each of its stakeholders, thereby contributing to the
socio-economic development of its host countries and supporting
long-term sustainable operations to the benefit of its employees,
partners and communities.
Petra is quoted with a premium listing on the Main Market of the
London Stock Exchange under the ticker 'PDL'. The Company’s
US$336.7 million notes due in 2026
are listed on the Irish Stock Exchange and admitted to trading on
the Global Exchange Market. For more information, visit
www.petradiamonds.com.
FURTHER INFORMATION
Please contact
Petra Diamonds, London
Telephone: +44 207494
8203
Jill Sherratt
investorrelations@petradiamonds.com
Julia Stone