Finsch to Close as Small Stone Prices Collapse

(IDEX Online) - Petra Diamonds is to close its Finsch mine, in South Africa, blaming a collapse in demand for smaller rough.

The decision follows the failure of a business-rescue process to find a viable way to restart mining.

Creditors approved a plan on 7 August for the mine's assets to be sold, bringing an end almost 60 years of commercial mining.

"The Business Rescue Practitioners have not found a viable outcome to restart operations at Finsch," said the company.

"The creditors have approved the Plan to sell off the assets of Finsch in order to recover the maximum amount of value possible for Finsch's creditors."

The mine's product mix - more than 90% of its production was below two carats - largely contributed to its demise as natural rough prices fell and lab growns became increasingly popular.

Finsch generated about 34% of Petra's revenue in fiscal 2025. With Finsch now being wound down, the iconic Cullinan will be Petra's only remaining operating mine.

The company once operated four mines, but sold Koffiefontein, South Africa, to Stargems Group in October 2024 and completed the sale of Williamson, Tanzania, in May 2025.

Petra is now expected to focus its finances and operating strategy on Cullinan, where production includes larger and higher-value diamonds.

Finsch operated since 1967 as an open-pit before moving underground in the 1990s. It was acquired by Petra from De Beers in 2011.

Petra describes Finsch as one of the world's significant diamond mines and South Africa's second-largest diamond operation by production

Petra first moved Finsch into business rescue in May 2026, after reviewing the mine's financial position and announcing group-wide cost and capital reductions. Production was suspended in June.

The company said the mine had become untenable despite strong operating performance because lower diamond prices and the stronger rand had overwhelmed its revenue. 

Pic shows Finsch mine, South Africa.