Petra Diamonds
Encyclopedia
Petra Diamonds Ltd. is a leading diamond mining group. It is headquartered in Jersey
, and is the largest diamond producer listed on Alternative Investment Market
, part of the London Stock Exchange
. It currently operates in South Africa, Tanzania
, and Botswana
, and previously worked on projects in Sierra Leone
and Angola
. Petra Diamonds' focus has shifted from exploration to production, becoming the second largest producer of diamonds in Africa. As of June 2010, Petra owns 7 of the 24 of the world's most productive mines historically.. These mines include the Cullinan Diamond Mine
famed for having produced the world's largest rough and polished diamond
. As a result of that acquisition Petra became one of the world's largest diamond groups on the basis of gross resource.
from which it has bought several mines in South Africa and Tanzania. Petra also has exploration rights in Botswana.
The fissure mines were acquired by Petra when it merged with Crown Diamonds NL in May 2005. Petra is renowned for its in-house expertise in mining such difficult fissure orebodies, unlocking value in otherwise economically inviable structures.
Petra Diamonds has a record of turning De Beers' unprofitable South African mines into financial successes. According to Nicky Oppenheimer
, Chairman of De Beers, the reason for this was "De Beers was operating the mines with too large a cost structure, something Petra doesn't have." The underground kimberlite mines were purchased from De Beers Consolidated Mines. Koffiefontein was purchased in December 2006 for ZAR82m, mostly covering the rehabilitation obligations at the mine. Petra managed to turn Koffiefontein mine into a profitable operation by making modifications to both the plant and the mining process, as well as by applying a leaner cost structure. Production from Koffiefontein at the end of April 2008 had an average value per carat of $484 which places the value of Koffiefontein's production amongst the world's top kimberlite mines.
1 billion. In line with the South African Mining Charter, the Petra Diamonds Cullinan Consortium included broad based Black Economic Empowerment
partners.
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. There are extensive resources in place, 58000000 carats (11,600 kg), at the B-Cut, excluding the potential of the 133000000 carats (26,600 kg) C-Cut resource.
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 3106 carat (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. The Cullinan, which was found near Pretoria more than a century ago, was until recently acknowledged to be the largest cut diamond in the world, weighing in at 530.2 carats (106 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 (109.1 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.
The Cullinan mine continues to produce large stones. The Cullinan Heritage, a 507 carats (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.. The previous record was held by Gem Diamonds' Leseli La Letšeng, which was bought for $18.4m by Graff Diamonds in December 2008.
in Tanzania in September 2008 from De Beers. The Williamson mine, which began production in 1940, has a reputation for the production of large, high value diamonds, with special stones (classified as larger than 10.8 carats (2.2 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 carats (10.8 g) pink diamond (the Williamson Pink Diamond)on her wedding day. The eventual 23.6 carats (4.7 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
.
The Williamson Mine is currently thought to have a resource of 40000000 carats (8,000 kg) (995 million tonnes of kimberlite). It has a maximum mining depth of 205 metres 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.".
.
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
, and is the largest diamond producer listed on Alternative Investment Market
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
, part of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. It currently operates in South Africa, Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
, and Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
, and previously worked on projects in Sierra Leone
Sierra Leone
Sierra Leone , officially the Republic of Sierra Leone, is a country in West Africa. It is bordered by Guinea to the north and east, Liberia to the southeast, and the Atlantic Ocean to the west and southwest. Sierra Leone covers a total area of and has an estimated population between 5.4 and 6.4...
and Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
. Petra Diamonds' focus has shifted from exploration to production, becoming the second largest producer of diamonds in Africa. As of June 2010, Petra owns 7 of the 24 of the world's most productive mines historically.. These mines include the Cullinan Diamond Mine
Premier Mine
The Premier Mine is an underground diamond mine owned by Petra Diamonds. It is situated in the town of Cullinan, 40 kilometres 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...
famed for having produced the world's largest rough and polished diamond
Cullinan Diamond
The Cullinan diamond is the largest rough gem-quality diamond ever found, at .The largest polished gem from the stone is named Cullinan I or the Great Star of Africa, and at was the largest polished diamond in the world until the 1985 discovery of the Golden Jubilee Diamond, , also from the...
. As a result of that acquisition Petra became one of the world's largest diamond groups on the basis of gross resource.
Overview of Mining Operations
Petra Diamonds currently has operations in three African countries. It has a relationship with De BeersDe Beers
De Beers is a family of companies that dominate the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea...
from which it has bought several mines in South Africa and Tanzania. Petra also has exploration rights in Botswana.
South Africa
As of June 2010, Petra Diamonds operates six producing diamond mines in South Africa. These break down into two categories, fissure mines (Helam, Sedibeng, Star) and underground kimberlite pipe mines (Koffiefontein, Cullinan). A seventh mine in South Africa, the Kimberley Underground mines, will come on stream in July 2010.The fissure mines were acquired by Petra when it merged with Crown Diamonds NL in May 2005. Petra is renowned for its in-house expertise in mining such difficult fissure orebodies, unlocking value in otherwise economically inviable structures.
Petra Diamonds has a record of turning De Beers' unprofitable South African mines into financial successes. According to Nicky Oppenheimer
Nicky Oppenheimer
Nicholas "Nicky" F. Oppenheimer is a South African businessman, the chairman of the De Beers diamond mining company and its subsidiary, the Diamond Trading Company. He also has a large financial interest in the diversified mining company Anglo American. In November 2011 the Oppenheimer family sold...
, Chairman of De Beers, the reason for this was "De Beers was operating the mines with too large a cost structure, something Petra doesn't have." The underground kimberlite mines were purchased from De Beers Consolidated Mines. Koffiefontein was purchased in December 2006 for ZAR82m, mostly covering the rehabilitation obligations at the mine. Petra managed to turn Koffiefontein mine into a profitable operation by making modifications to both the plant and the mining process, as well as by applying a leaner cost structure. Production from Koffiefontein at the end of April 2008 had an average value per carat of $484 which places the value of Koffiefontein's production amongst the world's top kimberlite mines.
Cullinan Diamond 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 ZARSouth African rand
The rand is the currency of South Africa. It takes its name from the Witwatersrand , the ridge upon which Johannesburg is built and where most of South Africa's gold deposits were found. The rand has the symbol "R" and is subdivided into 100 cents, symbol "c"...
1 billion. In line with the South African Mining Charter, the Petra Diamonds Cullinan Consortium included broad based Black Economic Empowerment
Black Economic Empowerment
Black Economic Empowerment is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them...
partners.
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. There are extensive resources in place, 58000000 carats (11,600 kg), at the B-Cut, excluding the potential of the 133000000 carats (26,600 kg) C-Cut resource.
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 3106 carat (0.6212 kg) rough. Sir Thomas Cullinan
Sir Thomas Cullinan
Sir Thomas Cullinan was a South African diamond magnate. He is renowned for giving his name to the Cullinan Diamond, the largest diamond ever discovered, and as owner of the Premier Mine, now renamed the Cullinan Mine, from which the famous gem was extracted on 26 January 1905...
, the former chairman of the Premier Diamond Mine, presented the Cullinan to England's King Edward VII in 1905. The Cullinan, which was found near Pretoria more than a century ago, was until recently acknowledged to be the largest cut diamond in the world, weighing in at 530.2 carats (106 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 (109.1 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.
The Cullinan mine continues to produce large stones. The Cullinan Heritage, a 507 carats (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.. The previous record was held by Gem Diamonds' Leseli La Letšeng, which was bought for $18.4m by Graff Diamonds in December 2008.
Tanzania
Petra agreed to acquire the Williamson MineWilliamson diamond mine
The Williamson Diamond Mine is a diamond mine south of Mwanza in Tanzania; it became well known as the first significant diamond mine outside of South Africa. The mine was established in 1940 by Dr...
in Tanzania in September 2008 from De Beers. The Williamson mine, which began production in 1940, has a reputation for the production of large, high value diamonds, with special stones (classified as larger than 10.8 carats (2.2 g)) produced regularly. The mine is also famed for its pink diamonds. In 1947, the mine's founder Dr. John Williamson
John Williamson (geologist)
John Thoburn Williamson was a Canadian geologist famous for establishing the Williamson diamond mine in present-day Tanzania....
presented Princess Elizabeth (later Elizabeth II) with a flawless 54 carats (10.8 g) pink diamond (the Williamson Pink Diamond)on her wedding day. The eventual 23.6 carats (4.7 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
The Pink Panther
The Pink Panther is a series of comedy films featuring the bungling French police detective Jacques Clouseau that began in 1963 with the release of the film of the same name. The role was originated by, and is most closely associated with, Peter Sellers...
.
The Williamson Mine is currently thought to have a resource of 40000000 carats (8,000 kg) (995 million tonnes of kimberlite). It has a maximum mining depth of 205 metres 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.".
Botswana
Petra has become the holder of the largest area under diamond prospecting licence in Botswana, following the acquisition of Kalahari Diamonds in September 2005. 36 kimberlites are known to exist in Petra's licence areas, including two important diamondiferous kimberlites close to the major Jwaneng diamond mineJwaneng diamond mine
The Jwaneng diamond mine is the richest diamond mine in the world and is located in south-central Botswana about west of the city of Gaborone, in the Naledi river valley of the Kalahari. Jwaneng, meaning "a place of small stones", is owned by Debswana, a partnership between the De Beers company...
.