Petra Diamonds to restart mining operations in northern Tanzania
Wednesday August 11 2021
A mine worker walks along an underground tunnel in a Petra Diamonds diamond mine in Cullinan, outside Pretoria, January 22, 2009. The firm is looking to restart operations of the Williamson mine at Mwadui in Shinyaga region, northern Tanzania. PHOTO | FILE
Petra Diamonds is looking to restart operations of the Williamson mine at Mwadui in Shinyaga region, northern Tanzania, in the first quarter of 2022.
Chief executive Richard Duffy said plans are being refined to allow WDL’s operations to restart in first quarter of 2022 to add 220,000 to 270,000 carats of diamonds to group production for the year.
Last year, Petra reached an out-of-court settlement with local communities after being sued in London for violation of human rights. On May 12, Petra announced it had reached a settlement on a no admission of liability basis in relation to claims brought in High Court in London by British law firm Leigh Day on behalf of anonymous claimants.
The firm said in update to shareholders for period ended June 30, that Petra paid over $1.3 million into an escrow account to fund restorative programmes.
“Discussions with the government of Tanzania to reach agreement on various issues at Williamson are ongoing with view to being concluded during first quarter of 2022,” Mr Duffy said in unaudited trading update sent to shareholders.
Production guidance for 2022 financial year has been set at about 3.3 million to 3.6 million carats of diamonds with the South African operations estimated to contribute between 3.1 million and 3.4 million carats.