(Adds details on framework agreement, other mining companies
present)
DAR ES SALAAM, Dec 13 (Reuters) - Petra Diamonds
will grant the government of Tanzania a 16% free carried
interest in its subsidiary Williamson Diamonds Limited, CEO
Richard Duffy said at a signing ceremony in Dar Es Salaam on
Monday.
The move, expected to be included in a framework agreement
to be signed on Monday, will bring Petra into line with
Tanzania's mining legislation which sees the government granted
a 16% free carried interest in all major mines in the country.
Williamson is Tanzania's only major diamond mine.
Petra Diamonds and the government of Tanzania will each give
up a proportionate amount of their current stakes to grant the
16% free carried interest, which is given to the state without
any attached financial obligation.
Petra's stake will thus reduce from 75% to 63%, with
Tanzania's stake increasing from 25% to 37%, Duffy said.
Tanzania's President Samia Suluhu Hassan was set to speak at
the ceremony later on Monday. Black Rock Mining, OreCorp, Peak
Resources, and Strandline Resources were also at the event,
where other agreements were expected to be signed.
Strandline last week said it had made "excellent progress"
towards completing its framework agreement with the Tanzanian
government.
(Reporting by Nuzulack Dausen in Dar Es Salaam, Writing by
Helen Reid; editing by Louise Heavens and David Evans)
Petra Diamonds (PDL)
