Mining Weekly reports that Petra Diamonds announced on Monday that the historic Koffiefontein diamond mine was to be placed on care and maintenance.

It was reported in May last year that together with its black economic empowerment partners, Petra, which owns 74% of the asset, was exploring a responsible exit from its investment in the Koffiefontein operations. The view expressed by Petra at the time was that it might be feasible for another owner to extend the mine’s life, but a buyer has not been found and the mine, situated in the Free State province about 80 km from Kimberley, will now be shut. Petra CEO Richard Duffy stated: “The board, in ongoing consultation with its stakeholders, has taken the difficult decision to cease operations and place Koffiefontein on care and maintenance. Engagement with our key stakeholders remains constructive as we seek to ensure an inclusive and responsible process towards mine closure.” The asset has been loss-making for several years and low morale remains a risk to the mine’s safety performance. A Section 189(3) notice was issued to Koffiefontein employees last year informing them of the economic realities of the mine and inviting them to join a collaborative process to determine the optimal way forward towards achieving the mine being placed on care and maintenance. Operations were halted to ensure assessed risks were mitigated.

• Read the full original of the report in the above regard at Mining Weekly

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