Petra Diamonds announces that the company has entered into a non-binding term sheet on an exclusive basis with an interested party for the potential sale of the Koffiefontein Diamond Mine (Koffiefontein) in South Africa.
Petra has been exploring a responsible exit from Koffiefontein since April 2022, with the operation being placed on care and maintenance in November 2022. The Company continues to transition Koffiefontein towards closure, with a closure application expected to be submitted to the Department of Mineral Resources and Energy (DMRE) in February 2024. This application will only be withdrawn upon completion of the potential sale. If the parties are unable to agree definitive agreements, then Petra intends to proceed with its decommissioning, rehabilitation and closure programme, in line with the closure plan that is planned to be submitted and pending DMRE approval.
Any sale would be subject to obtaining the consent of the DMRE in accordance with section 11 of South Africa's Mineral and Petroleum Resources Development Act. Petra is committed to ensuring that any future owner of Koffiefontein has the technical and financial capability to conduct operations in a responsible manner for all stakeholders.
The Company will provide further updates on the progress of the potential sale in due course.
Richard Duffy, Chief Executive Officer of Petra, commented:
"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.
"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."