In a significant development for the diamond industry, Stargems Group has successfully acquired the Koffiefontein diamond mine in South Africa. The acquisition, approved by South Africa’s Department of Mineral Resources and Energy, marks a strategic move by the diamond sourcing and supply company to expand its operations.
Under the terms of the agreement, Stargems will take over the management and operations of the mine. Instead of a lump-sum payment, the company will provide Petra, the previous owner, with a nominal cash consideration. Moreover, Stargems will assume all environmental rehabilitation liabilities and cover the care and maintenance costs for the site. This arrangement follows Petra’s expenditure of $23.1 million on these expenses in the first half of the year.
Richard Duffy, CEO of Petra, expressed satisfaction with the sale agreement, emphasizing the company’s commitment to a responsible exit strategy. He expressed confidence in Stargems’ technical expertise and financial capabilities to manage the mine responsibly, ensuring continued economic activity in the region. Additionally, the transaction is expected to save Petra an estimated $15 million to $18 million in closure-related costs.
This acquisition adds to Stargems’ growing portfolio in South Africa, following its purchase of two other diamond mines, Jagersfontein Holdings and Rooipoort Holdings, from Reinet Investments in 2022. The move underscores Stargems’ strategic efforts to strengthen its presence across the diamond supply chain and consolidate its position in the market.
