London-listed Petra Diamonds is expected to conclude the sale of its mothballed Koffiefontein mine in South Africa at the end of this month.
This follows the granting of unconditional consent by the Department of Mineral and Petroleum Resources for the sale of the entire issued share capital of Blue Diamond Mines to Koffiefontein Holdings, an affiliate of the Stargems Group.
Petra said it will avoid incurring closure-related costs of between $15 million and $18 million due to the transaction.
“The grant of the Section 11 consent by the Department of Mineral and Petroleum Resources (DMPR) will allow the Koffiefontein mine to continue with economic activity under new ownership,” said company chief executive Richard Duffy.
“We believe this is the best possible outcome for all stakeholders…"
The Koffiefontein mine has been under care and maintenance since November 2022.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
