REG-Petra Diamonds Ltd: Entry into long-term Power Purchase Agreements for renewable energy procurement

Petra DiamondsAnnouncement

23/05/2024 07:15

 

 

 23 May 2024  LSE: PDL  

 

 

Petra Diamonds Limited

(Petra or the Company)

 

Entry into long-term Power Purchase Agreements for renewable energy
procurement

 

 

Petra announces that it has entered into long-term Power Purchase Agreements
(PPAs) for the procurement of wheeled renewable energy for its Cullinan and
Finsch Diamond Mines from Etana Energy, a licenced South African energy
trader. The PPAs will supply each operation between 36-72% of the expected
load requirement from FY2026 onwards through utilising the existing electrical
grid.

 

This represents a milestone for Petra's sustainability ambitions, enabling
Petra to fulfil its target of reducing scope 1 and 2 GHG emissions by 35-40%
by 2030 (against its 2019 base line) well ahead of time. In addition to
reducing the Company's carbon footprint, the portion of the energy sourced
from Etana will contribute to predictable energy costs and is expected to
result in sustainable cost savings over the term of the PPAs. The Company
remains committed to generating zero emissions on a net basis for scope 1 and
2 by 2050, with an ambition to achieve this by 2040.

 

Etana provides cost-competitive clean energy from new large-scale renewable
energy projects through wheeling over the existing South African grid. It has
a portfolio of multiple ready-to-build and grid-secured wind and solar
projects that are expected to come online over the course of 2025 and 2026.
Etana's wind-heavy portfolio enables greater consistency of renewable energy
supply around the clock, resulting in enhanced cost savings and environmental
benefits.

 

Richard Duffy, Chief Executive of Petra Diamonds, commented:

 

"These agreements align with Petra's renewable strategy and exemplify the
Company's continued integration of its sustainability ambitions in everything
we do. This will result in a considerable reduction of our GHG emissions, well
ahead of our 2030 target, and will further strengthen the sustainability
credentials of our diamonds. We consider this to be an important facet,
alongside the traceability and provenance of our diamonds, in differentiating
Petra's product offering. Furthermore, as part of our ongoing efforts to
reduce our cost base, the tariff secured is expected to lead to sustained
reduction in our energy supply costs which will further reduce fixed costs at
our South African operations.

 

These agreements with Etana also demonstrate how Petra creates shared value
through partnerships and we look forward to embarking on this long-term
collaboration with them."

 

Reyburn Hendricks, Director of Etana Energy commented:

 

"We are delighted to announce these agreements with Petra Diamonds, which
shares our commitment to driving sustainability. This represents a key step
towards fulfilling our mission of accelerating the rollout of new renewable
energy capacity in SA in a way that creates value for our customers and has a
positive impact on the country and our planet."

 

FURTHER INFORMATION

 

Please contact

 

Investor Relations, London

Patrick Pittaway      Telephone: +44 20 7494 8203

Julia Stone      investorrelations@petradiamonds.com

Kelsey Traynor

 

 

 

 

ABOUT PETRA DIAMONDS

 

Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company's
portfolio incorporates interests in three underground mines in South Africa
(Cullinan Mine, Finsch and Koffiefontein) and one open pit mine in Tanzania
(Williamson). The Koffiefontein mine is currently on care and maintenance in
preparation for a possible sale following the execution of a definitive sales
agreement as announced on 8 April 2024.

 

Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

 

Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.

 

Petra is quoted with a premium listing on the Main Market of the London Stock
Exchange under the ticker 'PDL'. The Company's loan notes due in 2026 are
listed on the Irish Stock Exchange and admitted to trading on the Global
Exchange Market. For more information, visit www.petradiamonds.com.

 3986414_0.jpeg (https://news.cision.com/petra-diamonds-ltd/i/3986414-0-jpeg,c3303139)  



Copyright (c) 2024 PR Newswire Association,LLC. All Rights Reserved