Last checked at 11 Sep 2017 07:00
This announcement contains inside information
11 September 2017 | LSE: PDL |
Petra Diamonds Limited
("Petra" or the "Company" or the "Group")
Update re. Operations in Tanzania
Reports have recently appeared in the media about the findings of an investigation into the Tanzanian diamond sector by a parliamentary select committee in Tanzania. In connection with this,
Petra confirms that a parcel of diamonds (71,654.45 carats) from the Williamson mine in Tanzania has been blocked from export to Petra's marketing office in Antwerp and certain key personnel from Williamson are currently being questioned by the authorities. However the grounds upon which these actions have been taken have not been formally made known to the Company as yet.
The Williamson mine is held 75% by Petra and 25% by the Government of the United Republic of Tanzania (the "Government"), and Petra confirms that all operations related to the mine are conducted in a transparent manner and in full compliance with legislation in Tanzania and the Kimberley Process. The Government has complete oversight of the diamonds produced at the mine, which are physically controlled by a number of different Government representatives in conjunction with Petra from the point of recovery until the point of sale.
Petra is not responsible for the provisional valuation of diamond parcels from Williamson before they are exported to Antwerp; this is carried out by the Government's Diamonds and Gemstones valuation agency. This provisional valuation is used to calculate the Company's provisional royalty payments to the Government, however adjustments to final royalty payments based on the actual sales proceeds for the diamonds, once sold in Antwerp, are then made at the end of the tender process. The competitive open tender process utilised by Petra is also used by several other diamond mining companies and has a proven track record of transparent price discovery.
The following documentation relating to the aforementioned parcel can be viewed on the Company's website at www.petradiamonds.com/our-operations/our-mines/williamson/diamond-parcel-documentation:
· the Diamond Valuation Certificate issued by the Ministry of Energy and Minerals in Tanzania;
· the Kimberley Process Certificate;
· the Company's invoice for shipment purposes; and
· the receipts confirming the Company's payment of the provisional royalty and associated fees relating to the diamond parcel.
Petra is committed to engagement with the Government in order to resolve this matter and ensure that the correct information is available to all parties. The Company will be in a position to address any other concerns raised by the findings of the parliamentary investigation once it has received a copy of the report.
As a result of the aforementioned key personnel cooperating with the authorities on this matter, operations at Williamson have temporarily been stopped for health and safety and security reasons. The Company will provide an update on this matter in due course.
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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.
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.