Petra Diamonds has entered into a non-binding term sheet with an unnamed interested party for the potential sale of the Koffiefontein diamond mine in South Africa.
The diamond miner had been exploring a responsible exit from Koffiefontein since April 2022, with the operation being placed on care and maintenance in November 2022.
It plans to submit a closure application to the Department of Mineral Resources and Energy (DMRE) in February 2024.
This application, said Petra, would only be withdrawn upon completion of the potential sale.
However, if the parties fail to agree on definitive agreements, Petra will proceed with its decommissioning, rehabilitation, and closure programme.
"We are mindful of our obligations towards 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 chief executive Richard Duffy.
"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."
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
