Mineweb notes that Petra Diamonds is expecting to increase its production at the Koffiefontein and Kimberley underground mines to 1 million carats annually by 2010, in comparison to 250,000 carats last year. Production at the Cullinan mine is also expected to reach 1 million carats annually. Des Kilalea noted that the company has been realizing strong prices for its diamond yield. Prices at Koffiefontein have exceeded $400 per carat as compared to $280 per carat when the mine was owned by De Beers.
The Petra Diamonds Cullinan Consortium purchased the Cullinan mine from De Beers last year. Petra Diamonds leads the PDCC Group, which includes the Saudi Arabian investment company Al Rahji Holdings and the mining investment company Thembinkosi Mining. The mine's price tag was $150 million. Petra Diamonds also acquired the Koffiefontein mine from De Beers in 2007.
The RBC believes that Rockwell Diamonds will also outstrip its competitors. Rockwell’s first tender this year returned values of $2,300 per carat at the Holpan/Klipdam mines and over $3,000 per carat at Wouterspan. This is compared to an average of $1217 per carat and $2146 per carat respectively in 2007.
Despite a rise in Rockwell’s costs in the first quarter of the current year and losses incurred at Makoenskloof, the company expects costs to fall.
Rockwell Diamonds acquired the Makoenskloof alluvial mine in South Africa last year. The mine is 40 kilometers away from the Wouterspan diamond operation. The company’s shares are traded on the Toronto Stock Exchange and also on the Johannesburg Stock Exchange.
Petra has been ranked as a “speculative”
