Stargems acquires another South African Mine
April 12, 2024BY: LEAH MEIROVICH
“Dubai’s Stargems Group has acquired its third diamond mine in South Africa, taking over the Koffiefontein deposit from Petra Diamonds.
The diamond sourcing and supply company will acquire the mine pending approval from South Africa’s Department of Mineral Resources and Energy, Petra said Monday. In lieu of full payment, Stargems will give Petra a “nominal cash consideration” and will take over all environmental rehabilitation liabilities and care and maintenance costs for the site. In the first half of the year, Petra shelled out $23.1 million for those costs, it explained.
“Since taking the decision to close Koffiefontein, Petra has remained committed to also exploring a responsible exit in consultation with its stakeholders,” said Petra CEO Richard Duffy. “I am pleased that the sale agreement reached with Stargems will, once completed, provide ongoing economic activity in the region. We believe Stargems has the technical and financial capability to conduct operations in a responsible manner for all stakeholders. As a result of this transaction, Petra will avoid incurring closure-related costs of $15 million to $18 million.”
In 2022, Stargems purchased two other South African diamond mines, Jagersfontein Holdings and Rooipoort Holdings, from Reinet Investments, a Luxembourg-based business run by luxury tycoon and Richemont chairman Johann Rupert. The move was an effort to expand the company’s presence across the supply chain.”
Source: Rapaport
Photo courtesy of Petra Diamond Mining Company