Petra Suspends Operations at Finsch
June 04, 26
(IDEX Online) - Petra has suspended operations at its Finsch mine, in South Africa, blaming "an unprecedentedly weak diamond market" compounded by tensions in the Middle East and a strong rand.
The loss-making UK-based miner said there had been "a structural shift on pricing of smaller sized diamonds" - which represented the vast majority of Finsch's production (over 90% of rough is under 2 carats).
Petra will now focus its efforts on its one remaining operational mine, Cullinan, also in South Africa, which produces larger, Type II and other higher value stones.
The company's most recent tender results (for April and May) show an average per carat yield of $47 at Finsch, compared to $81 at Cullinan.
In a statement, Petra said it was putting Finsch into a business rescue process to protect the rest of the company from the losses it was making and the ongoing financial drain.
The announcement coincides with leadership changes: Juan Kemp is stepping down as joint CEO operations and Vivek Gadodia will assume the full CEO role.
It has suspended its production guidance for fiscal 2026 through 2030 while it develops a revised business plan, expected to be completed by the end of September 2026.
The new plan will incorporate the outcomes of both the Finsch business rescue process and the workforce reduction consultations at Cullinan.
The company employs more than 4,000 people across its operations but has not disclosed how many jobs will be cut.
It has begun formal consultations with employees and unions under Section 189A of South Africa's Labour Relations Act, which is the legal process for retrenchments.
Finsch accounted for 34% of Petra's group revenue in fiscal 2025, making it a significant part of the business despite its financial struggles.
The announcement that operations are being suspended at Finsch comes just days after Storm Mountain Diamonds said it was halting work at its Kao mine, in Lesotho.
Last month Burgundy Diamond Mines suspended operations at the Ekati mine, in Canada, and filed for creditor protection and in February the owners of Ekapa, in South Africa, closed the mine after a collapse that killed five miners and destroyed a shaft.
Petra bought the Finsch mine from De Beers in 2011. Until recently it operated four mines. In October 2024 it sold loss-making Koffiefontein, in South Africa.
And in May 2025 it sold Williamson, in Tanzania, as it sought to address liquidity challenges. A tailings dam breach at the mine in late 2022 caused significant environmental damage and led to a temporary suspension of operations.
Pic, courtesy Petra, show the Finsch mine.