De Beers to sell Koffiefontein mine for $11.6 MN

Petra Diamonds Ltd said it signed an agreement with De Beers Consolidated Mines (DBCM) to acquire the Koffiefontein diamond mine for $11.6 million (R81.9 million), according to a press release.

The price includes a payment of $11.3 million (R80 million) to assume De Beers� rehabilitation obligations at Koffiefontein, plus a cash payment of around $270,366 (R1.9 million) to De Beers.

Petra has also applied for a new order mining right to the South African department of minerals and energy, which it expects to be issued shortly. De Beers ceased mining at Koffiefontein when its old order mining right expired in February 2006.