In April 2024 Petra announced that it has entered into a definitive transaction agreement with affiliates of the Stargems diamond group for the sale of Koffiefontein.
The decision to transition ownership of Koffiefontein has been made with careful consideration, with a focus on providing continued economic activities in the Koffiefontein community. Petra is committed to working closely with regulatory bodies, employees, community representatives and other key stakeholders to ensure a smooth handover to the new owners.
Free State Province, South Africa
Mine start date
Acquisition by Petra
Status
Responsible exit
strategy underway
Sale of Koffiefontein
On 8 April 2024, Petra announced it had entered into a definitive transaction agreement with affiliates of the Stargems diamond group (Stargems) for the sale of Koffiefontein. Stargems has a significant global presence in the diamond and jewellery industry, including as an owner and operator of diamond mines in South Africa.
On completion of the sale, Petra will transfer its stake in the entity that owns KDM to Stargems for a nominal cash consideration and will no longer be responsible for KDM’s environmental rehabilitation liabilities and care and maintenance costs. After completion, Petra will remain liable for funding certain ongoing social commitments relating to KDM that were made during Petra’s ownership.
The sale of Koffiefontein will formally close once approval is received from the Department of Mineral Resources and Energy (DMRE) under Section 11 of the Mineral and Petroleum Resources Development Act.
In the meantime, Petra continues to implement a responsible and integrated shutdown of the Koffiefontein operations:
Koffiefontein responsible closure roadmap : sustaining life and livelihoods through shared value partnerships
Petra’s closure roadmap for Koffiefontein is premised on sustaining quality of life and livelihoods through the creation of shared value partnerships. We have developed a rehabilitation plan for the operation, which is supported by financial provisions for closure that comply with regulatory requirements.
- Petra has finalized the Section 189A retrenchment process in close consultation with all involved parties, transitioning Koffiefontein to a state of care and maintenance. Over 50 employees have been successfully relocated to other Petra operations.
- A Social Transition Committee has been established to foster a well-executed social transition for the local community, including developing alternative economic and social development opportunities to ensure substantial and sustainable benefits.
- An integrated mine closure roadmap has been developed, adhering to the principles established by the International Council on Mining and Metals (ICMM). This facilitates the identification and sequencing of all areas that require physical rehabilitation, while encouraging a responsible social transition process.
- Petra has made all of its residential and commercial properties accessible to former employees and the wider Letsemeng Local Municipality community.
Petra remains committed to ensuring all outstanding Social and Labour Plan (SLP) 3 catch-up plan commitments are fulfilled, up to the completion of the sale. If there is any unspent money from the SLP3 catch-up plan, it will be ringfenced for the sole purpose of completing the plan in consultation with the community and relevant stakeholders.
Petra’s multiyear roadmap
Petra has developed a multiyear roadmap to ensure Koffiefontein’s positive lasting legacy
