8th Jul 2016 06:35
LONDON (Alliance News) - Petra Diamonds Ltd on Friday said it has entered a joint venture agreement with Ekapa Mining (Pty) Ltd, which combines their operations in the Kimberley area in South Africa.
The joint venture comprises Petra's Kimberley underground mines, Ekapa's tailings operations and the Kimberley mines tailings operations of which Ekapa owns 50.1% and Petra owns 49.9%. The Kimberley mines tailing operations had been acquired from De Beers Consolidated Mines (Pty) Ltd in January.
Under the joint venture, Petra will own 75.9% of the combined operations and Ekapa will own 24.1%.
"These assets fit well with the group portfolio, given Petra's existing Kimberley underground operations in the area. Importantly, the transaction demonstrates our commitment to ensuring a sustainable future for the diamond mining industry in Kimberley, which will benefit the Kimberley mines workforce and local community," Chief Executive Johan Dippenaar said in a statement.
"The KEM JV is expected to bring significant synergies to the operations at Kimberley, including the ability to increase throughput and reduce operating costs, thereby extending the operation's mine life. Further production guidance will be included in the company's full-year 2016 trading update and full-year 2017 market guidance announcement, to be released on July 25, 2016," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Petra Diamonds