Extending the lives of our assets

Finsch diamond mine

Petra’s vision has been to develop a diamond mining group of global significance and, to this end, the Company has grown rapidly through acquisition.

Five important diamond mines have been acquired from De Beers since 2007 to date, including (in chronological order):

The acquisition of these mines, which in some cases could otherwise have been closed down, has not only consolidated Petra’s position as one of the world’s pre-eminent diamond companies; it has also provided job security to the mines’ workforces, and correspondingly, income to their dependents.

Petra will now be investing approximately US$850 million (in 2011 money at an exchange rate of R6.75/US$) in these mines over the period to 2019 to significantly extend their lives as follows:

These are the lengths of Petra’s initial mine plans for these assets, but the potential mine lives are much longer given that the diamond resources are evaluated to a certain level, below which the orebodies are open at depth.

The different approach that Petra brings is that these assets are core to its portfolio. The Company’s focus is therefore to right-size production levels, drive efficiencies and ensure that the processing plants are set up to recover the full spectrum of diamonds, including larger and high-value stones. Being a smaller company with lower overhead structures also helps Petra to maximise returns from these assets, which were formerly considered to be ‘marginal’ or ‘end-of-life’ operations.

Through acquisition, development and expansion, Petra has ensured a bright future for each of these important diamond mines and their employees.