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Johannesburg - Petra Diamonds has ended its exposure to Angola. This follows its decision to withdraw from the Luangue project, which will be returned to Angolan state diamond company Endiama.
Instead, it will focus future exploration efforts on Botswana which CEO John Dippenaar describes as a country which "still offers an exceptional basis for exploration, in that it ranks highly with regards to diamond prospectivity and very favourably with regards to operating costs and ease of logistical operation".
In December, Petra canned the Alto Cuilo project adjacent to Luangue in the north of Angola, despite having touted Alto Cuilo as its "flagship" exploration and development project for the past 10 years.
Petra financial director David Abery said in December the decision to quit Alto Cuilo was based on the economics of the project, given grade and cost considerations.
He added Petra wanted to focus on its producing mines at Koffiefontein and Cullinan in South Africa as well as the Williamson mine in Tanzania, all of which had been bought from De Beers.
Abery pointed to the equity limitation enforced by the Angolan government on private companies operating in the country as a "huge issue" which negatively affected the economics of any diamond mining project.
Dippenaar said on Monday: "Petra has reduced its exploration programme in order to focus resources on the development of its cash-positive producing operations as well as on exploration in Botswana, which requires minimal spend but is highly prospective."
He added Petra would spend $0.5m on exploration in Botswana in the six months to end-June, and thereafter had budgeted an annual exploration spend in the country of $0.5m.
Botswana would be the only country which Petra would explore and Dippenaar commented that, although Petra had cut back on its exploration spend there, it would not "relinquish any licence areas of interest and remains committed to operations in the country".
- Miningmx.com
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