Last checked at 28 Sep 2017 16:10
This announcement contains inside information
28 September 2017 | LSE: PDL |
Petra Diamonds Limited
("Petra" or the "Company")
Update on Labour Relations in South Africa
Petra Diamonds Limited announces that it has reached agreement with the National Union of Mineworkers ("NUM") with regards to salaries at the Finsch and Koffiefontein operations in South Africa and employees will report for their normal duties from tomorrow, 29 September 2017. No agreement has yet been reached at Kimberley Ekapa Mining JV. As reported earlier, Cullinan has not been impacted by the labour disruptions.
The three year wage agreement with NUM provides for annual increases to NUM members in the region of 9 to 10% for year one and 8.5% for years two and three. However, given lower wage increases for other levels of employees within the Group, the overall wage inflation for the Company is ca. 7.5% per annum. There is no material impact to Petra's cost guidance for FY 2018.
The Company also does not expect there to be a material impact on Group production guidance of 4.8 to 5.0 million carats for FY 2018.
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For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins cathy.malins@petradiamonds.com
Buchanan Telephone: +44 20 7466 5000
(PR Adviser)
Bobby Morse bobbym@buchanan.uk.com
Anna Michniewicz annam@buchanan.uk.com
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in five producing operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein), the Kimberley Ekapa Mining joint venture (including the Kimberley Underground mine and extensive tailings retreatment operations) and one open pit mine in Tanzania (Williamson). It also maintains an exploration programme in Botswana and South Africa.
Petra has a core objective to steadily increase annual production to 5.0 - 5.3 million from FY 2019 onwards. The Group has a significant resource base in excess of 300 million carats.
Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. For more information, visit www.petradiamonds.com.