Petra Diamonds & Ekapa Mining combine in Australia’s Kimberley

Petra Diamonds & Ekapa Mining combine in Australia’s Kimberley

Jersey-based Petra Diamonds (LSE:PDL) has announced it agreed to a joint venture with South Africa’s Ekapa Mining, which will combine their operations in Kimberley, Western Australia.

The Kimberley Ekapa Mining joint venture took effect from 1 July. Petra Diamonds and venture capital firm Bee Partners will own 75.9% and Ekapa Mining 24.1%.

The joint venture will comprise of Petra’s Kimberley underground mine and Ekapa Mining operations, which are part of Ekapa’s Mining Super Store and Kimberley Miners Forum subsidiaries.

It will also combine its joint operations in the area, made up of Kimberley Mines, in which Petra holds 49.9% and Ekapa Minerals, part of Ekapa Mining 50.1%.

Ekapa Minerals bought Kimberley Mines from De Beers Consolidated Mines in December 2015. Petra said the purchase “introduced a number of producing tailing deposits in the Kimberley area.”

“These assets fit well with the group portfolio, given Petra’s existing Kimberley Underground operations in the area,” said John Dippenaar, chief executive of Petra. “The Kimberley Ekapa Mining joint venture 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.”

@RGNonline