SA miner Petra Diamonds is set to close the sale of its Koffiefontein mine to Dubai’s Stargems Group by the end of the month, having announced its intention to sell the underperforming mine earlier this year.
The sale of Koffiefontein is expected to save Petra $15m-$18m (R260m-R313m) in costs related to the mine’s closure, which were previously included in the group’s balance sheet provisions set in June.
Having received unconditional consent in terms of section 11 of the Mineral and Petroleum Resources Development Act — which outlines the procedure for transferring mining rights in SA — the company said it expected to close the transaction by the end of this month.
Petra CEO Richard Duffy said: “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.
“The granting of the section 11 consent by the department of mineral & petroleum resources 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, and I would like to thank the department for its ongoing support in the approval process.”
Koffiefontein is the third SA diamond mine that Stargems has bought in recent years. In 2022, it acquired Jagersfontein and Rooiport from Reinet, amid the group’s efforts to expand its presence in Africa.
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