Petra Diamonds Ltd - Entry into long-term Power Purchase Agreements for renewable energy procurement
PR Newswire
LONDON, United Kingdom, May 23
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 Stoneinvestorrelations@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.
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