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Petra Diamonds to restart mining operations in northern Tanzania

Petra Diamonds has announced plans to restart mining operations in northern Tanzania at the Williamson mine Mwadui in Shinyaga region.

Chief executive Richard Duffy revealed the plans and said the operations which will begin in the first quarter of 2022, is set to allow WDL’s operations to add 220,000 to 270,000 carats of diamonds to group production for the year.

Admission of liability

Last year, Petra reached an out-of-court settlement with local communities after being sued in London for violation of human rights. The company later in May 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 US $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.

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