Petra Diamonds hit by strike, shares extend losses

(Reuters) – Petra Diamonds (PDL.L) shares fell 4 percent on Tuesday after the miner said it had experienced labour disruption overnight at its Finsch mine and Kimberley Ekapa Mining JV operations in South Africa.

Members of South Africa’s National Union of Mineworkers (NUM) are on strike over pay, regional secretary Cornelius Manhe said, after more than 600 members downed tools on Monday.

The London-listed miner had warned on Monday that there could be labour unrest as it finalises a new wage agreement for its operations in South Africa, sending its shares down 7 percent on the day.

It also said on Monday that it had resumed operations at its Williamson mine in Tanzania after a four-day stoppage, adding that its full-year production target remains unchanged.

Petra Diamonds had halted operations at the mine last week after the Tanzanian government seized a consignment of diamonds and questioned Petra personnel as part of a crackdown on the mining sector.

On Monday, Petra said it was unsure whether it would be able to export diamonds from its Williamson mine in Tanzania after authorities seized a parcel of 71,654 carats of rough diamonds destined for Antwerp. The country has not released the stones, but Petra was able to recommence mining at Williamson following a four-day stoppage.

The rough producer’s share price fell 5% in early trading Tuesday.

This announcement contains inside information

 

19 September 2017

 LSE: PDL

 

 

Petra Diamonds Limited

(“Petra” or the “Company” or the “Group”)

 

Labour Disruptions in South Africa

 

 

Further to the release of the Company’s preliminary results yesterday in which it noted that labour relations volatility could be experienced prior to the finalisation of its new wage agreement for its operations in South Africa, Petra confirms that since last night it is experiencing labour disruption at its Finsch mine and there is also disruption underway at its Kimberley Ekapa Mining JV operations.

 

The Company is currently assessing the impact on both operations. Although underground and surface mining have been affected, plant treatment is continuing at near normal capacity at both operations treating surface material and available stockpiles.

 

Normal operations are continuing at Cullinan and Koffiefontein.

 

The Company is in ongoing discussions with the National Union of Mineworkers in order to resolve the situation and is closely managing the situation to ensure the least possible impact on Group production. Petra will update the market as the situation unfolds.

 

 

~ Ends ~

 

 

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, visitwww.petradiamonds.com.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange

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