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IFC to Provide $25 Million Loan for Expansion of Petra Diamonds’ Finsch Mine in South Africa


In Washington, D.C.:
Josef Skoldeberg
Phone: + 1 (202) 473-6978
E-mail:  
jskoldeberg@ifc.org

In Johannesburg:
Desmond Dodd, IFC
Phone: +2711 731 3053
Email:
ddodd@ifc.org


Johannesburg, South Africa, July 3, 2012—IFC, a member of the World Bank Group, today signed an agreement to loan $25 million to fund the expansion of the Finsch diamond mine in South Africa as well as other Petra Diamonds general corporate purposes. The Finsch expansion will extend the life of a mine that is providing jobs, government revenues and opportunities for local suppliers in South Africa.

IFC’s financing consists of a two-year revolving loan to Finsch Diamond Mine (Pty) Limited, Petra Diamonds’ 74% owned subsidiary.  A parallel loan with similar terms has been provided by Rand Merchant Bank.  IFC is an equity and warrant holder in Petra Diamonds and has previously provided a loan for the company’s Williamson mine in Tanzania.


“We are pleased to continue our long term partnership with IFC through this financing  for the Finsch mine” said Petra Diamonds CEO Johan Dippenaar, “IFC has once again shown that they are uniquely positioned to draw on their global resources to meet our financing needs in a timely manner.”


“Petra Diamonds is committed to working with local communities and implementing projects that follow best practice environmental and social standards” said Tom Butler, IFC Global Head of Mining. “We are pleased that, together with Rand Merchant Bank, we are once again able to support the company in its African expansion plans.”


The Finsch mine is situated approximately 165km North West of Kimberley in the Northern Cape Province of South Africa.  Petra Diamonds’ expansion of the 44-year-old mine is expected to extend its life for a further 18 years and enable the mine to continue providing economic benefits to South Africa.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org.

About Petra Diamonds

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The company has a well-diversified portfolio, with interests in eight producing mines: seven in South Africa (Finsch, Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson). It also maintains a highly focused exploration program in Botswana. Petra offers an exceptional growth profile, with a core objective to steadily increase annual production to over 5 million carats by FY 2019. The Group has a major resource base in excess of 300 million carats. Petra conducts all its operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL'. For more information, visit the company's website at
www.petradiamonds.com

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