Petra to Invest Hundreds of Millions to Extend Life of Two South African Mines

Petra Diamonds will be investing $289 million to extend the life of the Cullinan mine and the Finsch mine (both in South Africa), IDEX Online reports.

Petra Diamonds said it will spend $173 million on Cullinan, and $216 million on Finsch to extend the life of the mine to 2031 and 2030 respectively. According to Petra, both mines “should have an IRR (internal rate of return) of more than 30%.”

Petra has also posted its revenue for the second half year of 2021, reporting a revenue rise of 49% year-on-year to $264.7 million. The rise was attributed to $77.9 million it got from the sale of exceptional stones “and a 16% increase in like-for-like rough diamond prices.” Adjusted profit before tax for the six months jumped from $6.5 million last year to $91.1 million.

Richard Duffy, Petra’s CEO said: “[…] We have benefitted from the recovery in rough diamond prices, record proceeds from the sale of exceptional stones, and the improvements we have made in our operations, resulting in significantly improved safety levels, profitability and cash flow.”

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