Petra Up For Sale As Pandemic Foils Debt Restructuring

Mining and Exploration
29/06/2020 05:55

Petra Diamonds has announced it is open to offers for (parts of) the company, after a strategic review of mounting debts, now at US$650 million. Only last year, Richard Duffy took over from former CEO Johan Dippenaar, with the task to turn around the troubled miner's balance sheets. The Covid-19 pandemic now foils the ongoing optimization and restructuring introduced by Duffy, as mines were forced to shut down and the global diamond market came to grinding halt.

According to Mining Mx, the current market conditions could mean Petra's assets, among others the Williamson mine in Tanzania and Cullinan mine in South Africa, could be up for grabs for "relatively bargain prices". Petra Diamonds recovered 2.07m ct in the first six months of the year and was aiming at 3.8m ct for the full year.