Johannesburg, South Africa — MININGREVIEW.COM — 16 August 2011 – Petra Diamonds Limited – one of the world’s largest independent diamond groups by resources – has gained approval from the South African government to buy the country’s second- largest diamond mine from De Beers for US$210 million.
“The acquisition process is now in the very final stages and we expect it to complete in the near future,” the company said in a statement today. Petra, which agreed to buy the Finsch mine in January, rose as much as 4.5% in London trading.
The purchase will help Petra more than double last year’s diamond production of 1.1 million carats as it seeks to boost output to benefit from rising prices. Rough, or uncut, prices have risen 68% this year after two consecutive annual gains of more than 30%, PolishedPrices.com data shows.
“Today’s announcement removes a significant part of the uncertainty regarding the timing of the completion of the Finsch mine acquisition,” said Dmitry Kalachev, an analyst at Cannacord Genuity. “The market should now focus on the company’s exceptional growth profile and cost controls.”