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

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.

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“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.