Petra Diamonds: Post Merger: What's Next?

Petra have been talking to Debeers and the government for at least a year. Although Koffiefontein was a marginal operation Petra's operating costs will be lower than Debeers (see Debeers's comments in their Report to Stakeholders referred to above). It looks as if Petra will be employing less people. It appears that Petra purchased Calibrated Diamonds to convince the government that it would add value to the local community. Debeers have another four marginal mines. Koffiefontein has reserves of 1.0m carats and resources (possible reserves) of 2.5m carats. Prior to February, when the mine closed, it was producing about 103,000 carats a year.