(Ecofin Agency) - Mining companies Petra Diamonds and Ekapa Mining signed a joint-venture agreement to combine their operations in the Kimberley region, into an unincorporated joint-venture named the Kimberley Ekapa Mining Joint Venture (KEM JV).

Operations involved comprise Petra Diamonds’ underground mines, Ekapa Mining’s tailings operations, and Kimberley Mines tailings operations, acquired from De Beers in January 2016. Petra and its BEE partners will have a 75.9% interest in the joint-venture, while Ekapa Mining will have a 24.1% interest.

“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,” said Petra’s CEO, Johan Dippenaar.

Besides the Kimberley region, Petra Diamonds has for assets in Africa, the Finsch, Williamson, Koffiefontein, Cullinan and the Helam mines in South Africa.

Louis-Nino Kansoun