Petra completes acquisition of Cullinan Diamond Mine

Petra Diamonds Limited, the international diamond mining group, has completed the acquisition of the Cullinan diamond mine (Cullinan) by the Petra Diamonds Cullinan Consortium (PDCC) from De Beers Consolidated Mines (De Beers).

The Cullinan kimberlite pipe is the second largest indicated diamond resource in the world by in-situ value. Petra’s initial interest in PDCC is 37%.

The mine is renowned for producing many of the world’s most spectacular diamonds (including over 300 stones weighing more than 100 carats), the most famous of which is the 3,106 carat Cullinan diamond.

Adonis Pouroulis, Petra’s Chairman, said, the acquisition of Cullinan by the Petra Diamonds Cullinan Consortium is a landmark deal and we at Petra are proud to take the helm at one of the world’s most important diamond mines.

Cullinan is a major producer and Petra’s associated production and cash flows are therefore expected to rise substantially over the next few years. This transaction underscores our belief in the tenets of broad based mineral ownership in South Africa and a sustainable mining operation at Cullinan will bring long lasting benefits to the local community of this historic town for many years to come. Cullinan earned its place in the history of diamonds and we, as a member of the Petra Diamonds Cullinan Consortium, intend that it should play a significant part in its future, the chairman said.

Nicky Oppenheimer, Chairman of De Beers, said, it is with appreciation to the employees, their families and the wider community of Cullinan that De Beers ends both a personal and a business association with Cullinan Diamond Mine which began in 1926 with my grandfather, Ernest Oppenheimer, joining the board of Premier (Transvaal) Diamond Mining Company Limited, and De Beers appointing the managing director.

Cullinan has every prospect of a sound future built, as it is, on a proud past of mining achievements and on being the premier source of the world’s largest and finest diamonds for more than a century. The mine can look forward to its association with the Petra Diamonds-led empowerment consortium, satisfying as it does both the transformation and business sustainability goals our company’s share. I look forward to watching Cullinan succeed in this, its next stage of what has become a legendary journey.

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