AIM-listed miner Petra Diamonds expects to increase diamond production in its South African mines five-fold to more than 1 million carats a year by 2010 and sees a firm tone in diamond prices, its CEO has said.
"We'll produce in excess of 1 million carats per annum by June 2010. Current production is in excess of 200,000 carats per annum. Cullinan mine will be a huge contributor to that production number," CEO Johan Dippenaar told Reuters in a telephone interview on July02.
Through a series of acquisitions, Petra Diamonds has transformed itself from an explorer into a mid-tier producer with six mines in South Africa. In 2007, Petra reached agreement to acquire three former De Beers operations: Cullinan (including the C-Cut), one of the largest diamond resources in the world, Koffiefontein and Kimberley Underground, adding substantial production capacity to its three fissure mines, Helam, Sedibeng and Star. The acquisition of Koffiefontein was completed in July 2007, whereas the acquisitions of Cullinan and Kimberley Underground are expected to be completed soon.
These mines produce high-quality white diamonds. Cullinan has a reputation for producing large rough white diamonds and as an important source of rare blue diamonds. The 3,106-carat Cullinan Diamond was the largest rough gem-quality diamond ever found. Polished gems from the stone, which was found at the Cullinan mine in 1905, are now part of the British crown jewels.
Comments
Comments are closed.