Petra to sell stake in Kimberley Ekapa Mining JV for $22 million

By Dale Benton
One of ther world’s leading diamond miners, with one of the world’s largest diamond resources, has announced a disposal of interest in a joint ventu...

One of ther world’s leading diamond miners, with one of the world’s largest diamond resources, has announced a disposal of interest in a joint venture in South Africa.

Petra Diamonds announced in a statement this week that it has entered into an agreement in regards to the disposal of its interest and its black economic empowerment (BEE) partners interest in the Kimberley Ekapa Mining Joint Venture (KEM JV).

The company will sell its interest of 75.9% in the JV for around 300 million South African Rand, which is close to $22 million.

KEM JV is a joint venture between Petra and its partner Ekapa Mining and incorporates the Kimberley Underground mine, extensive tailings retreatment programmes and the high volume Central Treatment Plant - all located in or around the historic diamond mining centre of Kimberley in South Africa.

Related stories:

Petra Diamonds announce the 121.26 carat diamond discovered at Cullinan

De Beers traces 100 high value diamonds through "industry first" blockchain platform

Debswana diamonds to expand Jwaneng Mine

“It [the disposal of interest] will ensure a sustainable future for KEM JV by placing the operation under the sole stewardship of an operator best suited to maximise its value,” said the company in a statement. “Ekapa Mining's extensive experience of operating specifically within Kimberley and its ability to solely focus on these assets is expected to provide the right fit for the operation, thereby ensuring continuation of diamond mining employment and related economic activity in this renowned diamond centre.”

The cash consideration for the disposal will be payable in 24 monthly instalments, starting in January 2019.

In 2017, the KEM JV produced more than 800, 000 carats.

 

Share

Featured Articles

PwC reports a tech skills shortage in the Mining industry

According to PwC's report, two-thirds of mining CEOs believing that a tech skills shortage will negatively impact the industry over the next ten years

Newmont acquires Newcrest to lead responsible mining

Mining company Newmont has announced an agreement to acquire Newcrest, to strengthen its position as a leader in safe & sustainable gold and copper mining

Mining software market to be worth $14.9 bn by 2028

Over the period of forecast, the surface mining segment is anticipated to hold the majority of the market share.

IEA highlights Latin America's abundant critical materials

Sustainability

McKinsey: Design is the answer to supply chain disruption

Supply Chain & Operations

Extending maintenance intervals with ultra-hard wearfacings

Technology