Dubai-based Stargems Group has finalized the acquisition of the Koffiefontein diamond mine in South Africa from Petra Diamonds, marking its third venture in the country’s diamond industry.
Pending approval from South Africa’s Department of Mineral Resources and Energy, Stargems will assume ownership of the mine.
The agreement includes a nominal cash consideration to Petra, with Stargems taking responsibility for environmental rehabilitation liabilities and site maintenance costs. Petra will avoid closure-related expenses estimated at $15 million to $18 million.
Petra CEO Richard Duffy expressed satisfaction with the sale agreement, emphasizing Stargems’ capacity for responsible operations.
The acquisition aligns with Stargems’ strategy to diversify its presence across the diamond supply chain, following its acquisition of two other South African diamond mines in 2022.
The move signals Stargems’ commitment to sustainable economic activity in the region and highlights its technical and financial capability to manage diamond operations responsibly.
