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Kimberley Ekapa Mining JV Formation

2016-07-12


Petra Diamonds announces that Petra and Ekapa Mining have entered into a joint venture (JV) agreement, which combines the respective operations, owned and operated by the joint venture partners in the Kimberley area, into an unincorporated joint venture named the Kimberley Ekapa Mining Joint Venture.

As previously reported, Ekapa Minerals acquired Kimberley Mines from De Beers Consolidated Mines which came into effect on 18 January 2016. This transaction introduced a number of producing tailing deposits in the Kimberley area, as well as a 6 Mtpa 'state-of-the-art' Combined Treatment Plant, which will be capable of processing ore from both ROM and tailings sources. Processing of tonnes through the plants at Kimberley Underground mines have ceased and future processing of both underground and surface resources will be done utilising the CTP.

Johan Dippenaar, Chief Executive Officer, commented: “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.

“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 FY 2016 Trading Update and FY 2017 Market Guidance announcement, to be released on 25 July 2016.”