Petra Diamonds

Last updated

Petra Diamonds
Company type Public
LSE:  PDL
Industry Diamond mining
Founded1997
Headquarters Jersey
Key people
Peter Hill, Chairman
Richard Duffy, CEO
ProductsDiamonds
RevenueDecrease2.svg US$325.3 million (2023) [1]
Decrease2.svg US$20.3 million (2023) [1]
Decrease2.svg US$(102.4) million (2023) [1]
Website petradiamonds.com

Petra Diamonds Ltd is a diamond mining group headquartered in Jersey. Petra own one of the world's most productive mines historically, the Cullinan Diamond Mine is famed for having produced the world's largest rough and polished diamond. The company is listed on the London Stock Exchange.

Contents

History

Petra Diamonds was founded by Adonis Pouroulis in 1997 and was first listed on the Alternative Investment Market later that year. [2] It transferred to the Main Market in December 2011. [3]

Operations

Petra Diamonds' operations are focused in Africa:

South Africa

Petra Diamonds operates three producing diamond mines in South Africa. These are all underground kimberlite pipe mines (Cullinan, Finsch and Koffiefontein). [4]

Finsch Mine

Finsch diamond mine is one of the world's most important diamond mines and South Africa's second largest diamond operation by production. On 14 September 2011, Petra purchased Finsch as a fully staffed, operating mine from De Beers for a total consideration of ZAR1.4 billion. Finsch is a major producer, having supplied over 126 million carats in its 40 plus year life to date. Petra is currently implementing a development plan to lift production from ca. 1.4 million carats per annum to 1.9 million carats per annum by FY 2017 (involving both underground and tailings production). [5]

Cullinan Mine

In July 2008, Petra led a consortium which acquired the Cullinan diamond mine from De Beers Consolidated Mines for a total cash consideration of ZAR1 billion. In line with the South African Mining Charter, the Petra Diamonds Cullinan Consortium included broad based Black Economic Empowerment partners. [6]

The Cullinan kimberlite pipe is the second largest indicated diamond resource in the world by in-situ value. The current operating levels include the B-Cut at a depth of 747 metres, and beneath that lies the Centenary-Cut ("the C-Cut"), a world class diamond resource. The mine hosts a total resource of 202.1 million carats, including 16.5 million carats in tailings dumps. [7]

The mine, previously known as Premier Diamond mine, is renowned for producing many of the world's largest and most famous diamonds, including the Cullinan Diamond, the world's largest gem diamond, at 3,106 carats (0.6212 kg) rough. Sir Thomas Cullinan, the former chairman of the Premier Diamond Mine, presented the Cullinan to England's King Edward VII in 1905. [8] The Great Star of Africa, which sits in the Sceptre of the Crown Jewels, was produced from the Cullinan Diamond, and was until recently acknowledged to be the largest cut diamond in the world, weighing in at 530.20 carats (106.040 g). In 1985 it lost the record to the Golden Jubilee, which was found in the same mine as the Cullinan and weighed 545.67 carats (109.134 g) in its polished state. More than a quarter of all diamonds weighing more than 400 carats (80 g) have originated from Cullinan. It is also the world's only significant source of blue diamonds. One of these famous large blue diamonds was cut into several stones and made into a necklace which subsequently became known as the Cullinan Blue Diamond necklace. [9]

The Cullinan mine continues to produce large stones. The Cullinan Heritage, a 507-carat (101.4 g) white diamond, was discovered in September 2009. This stone was the 19th biggest uncut diamond ever found and was sold in February 2010 to Chow Tai Fook Jewellery for $35.5m, the highest price ever paid for an uncut diamond. [10] The previous record was held by Gem Diamonds' Leseli La Letšeng, which was bought for $18.4m by Graff Diamonds in December 2008. [11]

Koffiefontein

Koffiefontein mine is one of the world’s top diamond mines by average value per carat and produces exceptional white and coloured diamonds, a regular proportion of which are of between 5 and 30 carats. In 1994, a 232.34 carat diamond was recovered at Koffiefontein, being the largest rough diamond ever produced by the mine. [12]

Diamonds were first discovered on the Koffiefontein farm in 1870. Mining started in the form of small claims that were later amalgamated into Koffiefontein Mine Limited. De Beers acquired control of Koffiefontein Mine Limited in 1911. Mining operations were then continuous until the advent of the Great Depression in 1932 when work was suspended. Between 1950 and 1953, a prospecting shaft was sunk which was followed by limited production. The mine was reopened in 1970 and preparations for increased production were completed in August 1971. Immediately after completing the preparations, production from the open pit commenced and proceeded to a depth of 270 metres. Underground development started in 1974 through a sampling programme. Underground production briefly took place in 1982 but ceased soon thereafter due to the 1981 slump in the diamond market. These operations were resumed in March 1987. During the period 1972 to the end of 2004, approximately 69.5 million tonnes of kimberlite ore were mined and 6.1 million carats of diamonds were recovered. In February 2006, De Beers ceased mining when the old order mining right for Koffiefontein expired and in July of that year Petra Diamonds commenced operating the mine under care and maintenance conditions. The acquisition of the mine was completed in July 2007 and Petra Diamonds was subsequently able to commence diamond recoveries by starting to process the stockpile through the plant. [13]

Tanzania

Petra agreed to acquire the Williamson Mine in Tanzania in September 2008 from De Beers and completed the acquisition in February 2009. [14] The Williamson mine, which was discovered in 1940, has a reputation for the production of large, high value diamonds, with special stones (classified as larger than 10.8 carats (2.16 g)) produced regularly. The mine is also famed for its pink diamonds. In 1947, the mine's founder Dr. John Williamson presented Princess Elizabeth (later Elizabeth II) with a flawless 54-carat (10.8 g) pink diamond (the Williamson Pink Diamond) on her wedding day. The eventual 23.6-carat (4.72 g) cut diamond became the centre stone in the Williamson Diamond brooch and is supposedly the basis for the Pink Panther diamond in the film of the same name. [15]

The Williamson Mine currently has a resource of 39.6 million carats (8,000 kg) (984 million tonnes of kimberlite). It has an average mining depth of 65 metres (90m at the deepest point) and a very low stripping ratio. Energy and Minerals Minister William Ngeleja said Petra's entry is "an opportunity to breathe new life into Williamson Mine and Tanzania's diamond mining sector." [16]

See also

Related Research Articles

<span class="mw-page-title-main">Diamond</span> Form of carbon

Diamond is a solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the chemically stable form of carbon at room temperature and pressure, but diamond is metastable and converts to it at a negligible rate under those conditions. Diamond has the highest hardness and thermal conductivity of any natural material, properties that are used in major industrial applications such as cutting and polishing tools. They are also the reason that diamond anvil cells can subject materials to pressures found deep in the Earth.

<span class="mw-page-title-main">Cullinan Diamond</span> Largest gem-quality diamond ever discovered

The Cullinan Diamond is the largest gem-quality rough diamond ever found, weighing 3,106 carats (621.20 g), discovered at the Premier No.2 mine in Cullinan, South Africa, on 26 January 1905. It was named after Thomas Cullinan, the owner of the mine. In April 1905, it was put on sale in London, but despite considerable interest, it was still unsold after two years. In 1907, the Transvaal Colony government bought the Cullinan and Prime Minister Louis Botha presented it to Edward VII, the British king who reigned over the territory, and it was cut by Joseph Asscher & Co. in Amsterdam.

<span class="mw-page-title-main">Argyle diamond mine</span> Former diamond mine in Western Australia

The Argyle Diamond Mine was a diamond mine located in the East Kimberley region in the remote north of Western Australia. Argyle was at times the largest diamond producer in the world by volume, although the proportion of gem-quality diamonds was low. It was the only known significant source of pink and red diamonds, and additionally provided a large proportion of other naturally coloured diamonds, including champagne, cognac and rare blue diamonds.

<span class="mw-page-title-main">Diavik Diamond Mine</span> Mine in Northwest Territories, Canada

The Diavik Diamond Mine is a diamond mine in the North Slave Region of the Northwest Territories, Canada, about 300 km (190 mi) northeast of Yellowknife.

The Pink Star, formerly known as the Steinmetz Pink, is a diamond weighing 59.60 carats, rated in color as Fancy Vivid Pink by the Gemological Institute of America. The Pink Star was mined by De Beers in 1999 in South Africa, and weighed 132.5 carats in the rough. The Pink Star is the largest known diamond having been rated Vivid Pink. As a result of this exceptional rarity, the Beny Steinmetz Group called Steinmetz Diamonds took a cautious 20 months to cut the Pink. It was unveiled in Monaco on 29 May 2003 in a public ceremony.

<span class="mw-page-title-main">Williamson diamond mine</span>

The Williamson Diamond Mine is a diamond mine 23 kilometres (14 mi) northeast of Shinyanga in Tanzania; it became well known as the first significant diamond mine outside of South Africa. The kimberlite pipe was found in March 1940 and the mine established by John Williamson, a Canadian geologist, and has been continuous operation since then, making it one of the oldest continuously operating diamond mines in the world. Over its lifetime it has produced over 19 million carats (3,800 kg) of diamonds. A 2020 report by The Guardian said that high-quality pink diamonds from the mine could value up to $700,000 a carat.

<span class="mw-page-title-main">John Williamson (geologist)</span> Canadian geologist

John Thoburn Williamson was a Canadian geologist famous for establishing the Williamson diamond mine in present-day Tanzania.

<span class="mw-page-title-main">Excelsior Diamond</span> Large diamond discovered in 1893

The Excelsior Diamond is a gem-quality diamond, and was the largest known diamond in the world from the time of its discovery in 1893 until 1905, when the Cullinan Diamond was found. It was found on June 30, 1893, at the Jagersfontein Mine in South Africa, 130 kilometres south east of Kimberley whose fame as a diamond mining center always overshadowed that of Jagersfontein. It had a blue-white tint and weighed 971 old carats or 995.2 metric carats. The Excelsior rates as the fourth largest rough diamond of gem quality ever found. It was ultimately cut into ten stones weighing from 13 to 68 carats.

<span class="mw-page-title-main">Premier Mine</span> Diamond mine in South Africa

The Premier Mine is an underground diamond mine owned by Petra Diamonds in the town of Cullinan, 40 kilometres (25 mi) east of Pretoria, Gauteng Province, South Africa. Established in 1902, it was renamed the Cullinan Diamond Mine in November 2003 in celebration of its centenary. The mine is a carrot-shaped volcanic pipe and has a surface area of 32 hectares. The mine rose to prominence in 1905, when the Cullinan Diamond – the largest rough diamond of gem quality ever found – was discovered there.

<span class="mw-page-title-main">Alrosa</span> Russian diamond mining company

Alrosa is a Russian group of diamond mining companies that specialize in exploration, mining, manufacture, and sale of diamonds. The company leads the world in diamond mining by volume. Mining takes place in Western Yakutia, the Arkhangelsk region, and Africa. Alrosa is Russia's leading diamond mining and distribution company, accounting for 95% of Russian diamond production and 27% of global diamond extraction.

<span class="mw-page-title-main">Canadian diamonds</span> Sort of diamonds

Canadian diamonds are diamonds which have been mined in any one of the provinces and territories of Canada. Diamond-rich areas were not commercially extracted in Canada until the early 1990s. For the first 60 years of the 20th century, diamonds originated from kimberlite pipes and alluvial deposits in places such as Africa and some from South America. Later, diamond discoveries were made in the Soviet Union. Since the 1990s, major diamond discoveries were made and mining operations began. Canadian diamonds play a large role in the world market of diamonds.

<span class="mw-page-title-main">Koffiefontein mine</span> Diamond mine in the Free State, South Africa

Koffiefontein Mine is a diamond mine situated in the Free State province, about 80 km from Kimberley, South Africa. It is one of the many Kimberley mines of which Kimberley mine, de Beers mine, Dutoitspan, Bultfontein and Wesselton are its more famous neighbours.

<span class="mw-page-title-main">Jagersfontein Mine</span> Biggest hand-excavated hole in the world, South Africa

Jagersfontein Mine was an open-pit mine in South Africa, located close to the town of Jagersfontein and about 110 kilometres south-west of Bloemfontein. Since it was first established, two of the ten biggest diamonds ever discovered, the Excelsior and the Reitz, were mined from Jagersfontein. The term "Jagers" has since been coined to denote the distinctive faint bluish tint of the gems from this mine. Among geologists, Jagersfontein is known as a kimberlite pipe, and a prime locality for mantle xenoliths, some of which are believed to have come from depths of 300–500 km (190–310 mi).

<span class="mw-page-title-main">Brown diamonds</span> Most common color variety of natural diamonds

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<span class="mw-page-title-main">Lucara Diamond</span>

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The Woyie River Diamond was recovered on 6 January 1945 from the Woyie River near Koidu in eastern Sierra Leone. The uncut stone weighed 770 carats (154 g), and at that time it was the largest alluvial diamond ever found, and the third largest diamond discovered in Africa, after the Cullinan Diamond and the Excelsior Diamond. The alluvial Star of Sierra Leone, discovered at the Diminco mine in Sierra Leone in 1970, is larger at 968.9 carats (193.78 g) uncut.

JSC «Severalmaz» is a Russian diamond mining company. It is a subsidiary of JSC "Alrosa" and holds a license for Europe's largest Lomonosov diamond mine, in Arkhangelsk Oblast, with reserves of 220 million carats of rough diamonds. Production in 2009 amounted to 500,000 carats of rough diamonds.

<span class="mw-page-title-main">Lesedi La Rona</span> 4th largest diamond, found 2015

Lesedi La Rona, formerly known in media as Karowe AK6 or as Quad 1 by the personnel at the mine, is the fifth-largest diamond ever found, and the third-largest of gem quality. It was found in the Karowe mine, in Botswana on 16 November 2015.

References

  1. 1 2 3 "Preliminary Results Announcement for the Year ended 30 June 2023" (PDF). Petra Diamonds. Retrieved 15 February 2024.
  2. Johan Dippenaar: Prices for both rough and polished are performing well currently and we believe that the longer-term fundamentals of the market are robust Rough & Polished, 27 June 2011
  3. Petra Diamonds shares begin Main Market trading Mining Journal, 21 December 2011
  4. "Where Petra Diamonds Sees Its Competitive Edge". Rapaport. 24 October 2023. Retrieved 6 February 2024.
  5. Petra to produce 1.5m ct per year at newly-acquired Finsch Diamond mine Rough & Polished, 10 February 2011
  6. "Petra buys De Beers' Cullinan for R1bn". Mining Weekly. 22 November 2007. Retrieved 18 October 2016.
  7. "Tour of the Cullinan Diamond Mine (Solid)". Meet up. Retrieved 18 October 2016.
  8. "Gemstones Diamonds Books - Farlang". Farlang. Retrieved 1 April 2015.
  9. Exploring Africa's Gem Trail Archived 2006-09-05 at the Wayback Machine The Loupe GIA World News, Winter 2009
  10. Dawber, Alistair (27 February 2010). "Egg-sized diamond sold to Hong Kong jeweller for a record $35m" . The Independent. London. Archived from the original on 26 May 2022.
  11. Gem's biggest diamonds The Telegraph
  12. "Koffiefontein Diamond Mine (RSA, Petra Diamonds)". Rough & Polished. Retrieved 18 October 2016.
  13. "Koffiefontein mine". Rough & Polished. Archived from the original on 14 March 2013. Retrieved 18 October 2016.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  14. Tanzania: Petra Buys De Beers 75 Percent Stake in Dar Mining Firm for $10 Million All Africa, 14 September 2008
  15. "The Williamson Diamond Brooch: the Royal Collection". Royalcollection.org.uk.
  16. Mixed Outlook As Diamond Giant De Beers Sells Williamson Mine to Petra All Africa, 16 September 2008