Petra Diamonds has recovered a blue diamond weighing 41.82 carats from its Cullinan mine in South Africa.
The stone, a type IIb of “exceptional quality”, is the first of its colour and magnitude the deposit has yielded in the past five years, Petra said Tuesday. The previous one was a 39.34-carat diamond it found at the site in April 2021. The company sold that gem for US$40.2 million.
The miner is in the process of analysing the stone and deciding the best method of sale. The Cullinan mine is known for the recovery of rare, high-value blue diamonds.
The stone is significant for Petra, which has been facing challenges due to lower demand for diamonds in the past few years. In October, the miner reported the average price it received for rough fell 13% to $110 per carat in the first fiscal quarter that ended September 30. Meanwhile, the company had fully drawn its US$102 million revolving credit facility as of September 30, while its net debt increased to US$287 million at the end of the quarter from US$264 million as of June 30.
The company also announced that same month that it had launched a rights issue in an effort to raise funds to keep the business afloat. It’s seeking approximately GBP 18.8 million (approximately US$25.1 million) to continue to run the business.
Cullinan Mine is Petra’s flagship asset and a world-class kimberlite, famous for being home to the largest gem diamond (3,106 cts) ever recovered as well as being the world’s most important source of blue diamonds.
Discovered in 1902, Cullinan Mine has yielded many of the earth’s most desirable and iconic diamonds and is renowned for very rare and highly valuable Type IIb blue diamonds and high-quality Type IIa white diamonds.Cullinan Mine has the potential to continue mining into the late 2040s. Petra has operated Cullinan Mine since 2008 and, through significant capital investment, has turned it from a loss-making entity to the world-class diamond mine that it is today. Current production uses a block-cave mining method, which is efficient and low cost. Through the installation of a new plant, the application of the latest processing technology and the use of highly technical mining methods in accordance with the mine’s various geological technicalities, we maximise the value of this unique asset. –Own Reporter/Rapaport.
