Johannesburg: Petra Diamonds Limited announced it has entered into an unincorporated joint venture agreement with Ekapa Mining (Pty) Ltd. named the Kimberley Ekapa Mining Joint Venture.

The respective operations comprise Petra’s Kimberley Underground mines, Ekapa’s tailings operations and Kimberley Mines tailings operations. The joint venture agreement came into effect on July 1, with Petra and its BEE partners holding 75.9 percent of the combined operations, and Ekapa Mining the remaining 24.1 percent.

“These assets fit well with the Group portfolio, given Petra’s existing Kimberley Underground operations in the area,” said Petra CEO Johan Dippenaar.

“Importantly, the transaction demonstrates our commitment to ensuring a sustainable future for the diamond mining industry in Kimberley, which will benefit the Kimberley Mines workforce and local community.

“The KEM JV is expected to bring significant synergies to the operations at Kimberley, including the ability to increase throughput and reduce operating costs, thereby extending the operation’s mine life.”

Ekapa Minerals acquired Kimberley Mines from De Beers Consolidated Mines (Pty) Ltd in January.