Petra Diamonds expects to close the sale of its Koffiefontein mine to Stargems Group before the end of the month.
The miner has received regulatory approval to sell its entire shareholding in Blue Diamond Mines to Koffiefontein Holdings, an affiliate of Dubai-based diamond manufacturer Stargems Group, it said Monday. The sale, which Petra initiated in April after months of assuming the costs for keeping the deposit on care and maintenance, will allow the miner to avoid $15 million to $18 million in anticipated closure costs while ensuring that the Koffiefontein mine continues operations under new management.
“Since taking the difficult decision to put the Koffiefontein mine on care and maintenance and planning for closure of the mine, Petra has remained committed to exploring a responsible exit of the asset,” said Petra CEO Richard Duffy. “The grant of…consent by [South Africa’s] Department of Mineral and Petroleum Resources (DMPR) will allow the Koffiefontein mine to continue with economic activity under new ownership. We believe this is the best possible outcome for all stakeholders involved.”
This will be Stargems’ third diamond-mine purchase since 2022, signaling the company’s intention to expand its presence across the industry. These include the Jagersfontein and Rooipoort sites, also both located in South Africa.
Image: The Koffiefontein mine. (Petra Diamonds)
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