PDL Petra Diamonds Limited

TIDMPDL

Petra Diamonds Limited

31 October 2019

 
 31 October 2019    LSE: PDL 
 

Petra Diamonds Limited

("Petra" or the "Company")

Launch of Artisanal Small Scale Mining Initiative in Koffiefontein

Petra Diamonds Limited today announces the launch of an Artisanal Small Scale Mining ("ASM") initiative in the Free State town of Koffiefontein in South Africa. This follows a process of extensive consultation and cooperation with relevant stakeholders, including the Department of Mineral Resources and Energy ("DMR&E"), as mining sector regulator, the Letsemeng Local Municipality, as elected representatives of the community, and the community itself. During this project, the aim was to create a framework within which ASM can be conducted by community members in a legal and regulated manner.

Petra believes that there is a space for artisanal small scale miners to co-exist with formalised, large-scale mining, since ASM can often profitably recover diamonds from resources that would be unprofitable, or at best marginal, for a larger operator due to the capital and overhead costs involved. A decision was taken to make available some of the Tailings Mineral Resources ("TMR"), notably the resource generally referred to as the "Eskom dump", for the benefit of the community of Koffiefontein. The intention is that properly regulated artisanal mining, which would comply with the Kimberley Process Certification Scheme, as well as other standards for such operations set by, inter alia, the United Nations, will be conducted on this resource.

This is the second ASM initiative put in place by the Company, further to Petra's efforts and involvement in establishing the ASM sector in Kimberley. This culminated in the landmark agreement in 2017 between Kimberley Ekapa Mining JV, in which Petra had a majority interest at the time, and other stakeholders, with the result that available TMRs in Kimberley were allocated to two community-based primary mining co-operatives, Batho Pele and Goede Hoop.

Work on the project at Koffiefontein commenced soon after the conclusion of the above agreement, with the intention to take into account the learnings from the initiative in Kimberley and put in place an ASM dispensation in Koffiefontein that would be able to both optimally exploit the available resource, and accrue maximum benefit to the community. To this end, the Koffiefontein Community Mining Primary Cooperative ("KCM") has been officially established and registered as the primary beneficiaries of this project and the infrastructure and processes required to ensure the operation of this venture have been put in place.

Richard Duffy, Chief Executive of Petra, commented:

"We regard this initiative as yet another milestone in the Petra legacy and we welcome the KCM artisanal miners as partners in our industry to complement our own operations and extract optimal benefit from the diamond reserves in Koffiefontein. We wish KCM all of the best with this venture, and thank our Government and community partners for their continued support of both the project and the KCM."

Ends

For further information, please contact:

   Petra Diamonds, London                                         Telephone: +44 20 7494 8203 

Cathy Malins

Des Kilalea

Marianna Bowes investorrelations@petradiamonds.com

Buchanan Telephone: +44 20 7466 5000

(PR Adviser)

Bobby Morse

   Ariadna Peretz                                                            pdl@buchanan.uk.com 

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market. The Company has a diversified portfolio incorporating interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit producing mine in Tanzania (Williamson). Petra also conducts a limited exploration programme in Botswana and South Africa.

Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of ca. 250 million carats, which supports the potential for long-life operations.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities.

Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. The Company's US$650 million loan notes due in 2022 are listed on the Global Exchange market of the Irish Stock Exchange. For more information, visit www.petradiamonds.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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