Industry News by Nemesis

Petra Sells South Africa Mine for $14

December 9, 2018

 

Petra Diamonds has offloaded its Helam mine in South Africa for a total price of ZAR 200 ($14). 

Petra put the asset on care and maintenance in 2015 after failing to find a suitable buyer, and hasn’t carried out any mining there since. It has now sold it to Lindleys Mining to support a South African government program to prolong the lives of deposits facing closure, Petra said last week. 

The disposal is also part of Petra’s streamlining of assets, with care-and-maintenance costs for the mine coming to about $2 million per year. Petra will offload $1.7 million of related environmental obligations to Lindleys, while retaining shared access to the processing plant, which it has been using for sampling work for its other projects. 

Petra’s former technical director, Jim Davidson — who retired from the company in June — has taken a 49% stake in Lindleys, Petra added.

Petra last week completed the sale of its majority interest in the Kimberley mine in South Africa to Ekapa Mining for ZAR 300 million ($22 million) as part of the efforts to shed unprofitable assets.

Image: Rough diamonds. (Shutterstock)

 

Source: Rapaport

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