Diamonds, News & Features, Resource News
Petra Gets Approval to Buy De Beers’ Finsch Diamond Mine for $210 Million
By Bloomberg · August 16, 2011 · 10:59 am · Leave a Comment
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By Thomas Biesheuvel
Petra Diamonds Ltd. (PDL) gained approval from the South African government to buy the country’s second- largest diamond mine from De Beers for $210 million.
“The acquisition process is now in the very final stages and we expect it to complete in the near future,” Petra said in a statement today. Petra, which agreed to buy the Finsch mine in January, rose as much as 4.5 percent 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 percent this year after two consecutive annual gains of more than 30 percent, PolishedPrices.com data show.
“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.”
Petra advanced 1.75 pence, or 1.3 percent, to 135.75 pence by 8:56 a.m. in London trading.
