Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Petra Diamonds is pleased to announce that Ministerial consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”) has been granted for the cession and transfer of the new order mining right for the Finsch diamond mine in South Africa (“Finsch”) from De Beers Consolidated Mines Limited (“De Beers”) to Afropean Diamonds (Pty) Limited (”Afropean”). Afropean represents Petra’s interests in Finsch; Afropean being owned as to Petra 74% and Petra’s Black Economic Empowerment partners 26%.
As announced on 21 January 2011, Petra (via Afropean) entered into an agreement with De Beers to acquire Finsch. A key condition of the acquisition was that Ministerial consent under Section 11 of the MPRDA for the cession of the Finsch new order mining right be granted. Following the granting of the Section 11 consent, the only remaining material condition is the registration of the transfer of the Finsch new order mining right in the South African Mineral and Petroleum Titles Registration Office; this is expected to happen in the near future.
When this last condition has been met and the acquisition completes, Petra will publish a Finsch resource statement in accordance with the AIM Guidance for Mining Companies.
Johan Dippenaar, CEO of Petra, commented, “We are delighted to have received the Section 11 Ministerial consent. The acquisition process is now in the very final stages and we expect it to complete in the near future. Petra will then take over management of this major producing diamond mine which, after an initial three month bedding down period, is expected to add approximately 125,000 carats per month to Petra’s production.”
Petra Diamonds Ltd, London
Telephone: +44 20 7318 0452
Susanna Woodward: [email protected]
Buchanan Communications (PR Adviser)
Telephone: +44 20 7466 5000
Bobby Morse: [email protected]
James Strong: [email protected]
Canaccord Genuity Limited (NOMAD and Joint Broker)
Telephone: +44 20 7050 6500
Robert Finlay: [email protected]
Andrew Chubb: [email protected]
RBC Capital Markets (Financial Adviser and Joint Broker)
Telephone: +44 20 7653 4000
Joshua Critchley: [email protected]
Martin Eales: [email protected]
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market.
The Company offers an exceptional growth profile within the diamond sector, with a core objective to increase annual production to around 4 million carats by FY 2014 (including Finsch) and further increase output to over 5 million carats by FY 2019 (including Finsch). The Group has a major resource base in excess of 300 million carats (including Finsch).
Petra has a well-diversified portfolio, with interests in seven producing mines: six in South Africa (Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson). Post completion of the Finsch acquisition, the Company will have eight producing mines in Africa.
Petra conducts all its operations according to the highest ethical standards and will only work in countries which are members of the Kimberley Process. The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL). For more information, visit www.petradiamonds.com.
Read the full news release here.
