Petra Diamonds Update re Williamson TSF wall breach

 
TIDMPDL 
 
30 November 2022                                                        LSE: PDL 
 
FOR IMMEDIATE RELEASE 
 
                            Petra Diamonds Limited 
                         ("Petra") or the ("Company") 
 
 Update regarding Tailings Storage Facility (TSF) wall breach at Williamson in 
                                   Tanzania 
 
In follow up to its announcement of 10 November 2022, Petra provides a further 
update regarding the TSF wall breach at the Williamson mine on 7 November 2022. 
 
Impact on the environment and local community 
 
The assessment team has concluded there is a low risk of further breaches of 
the TSF or a breach of the New Alamasi water dam. Williamson Diamonds Limited 
(WDL) has constructed an initial 6m high wall to close the breached wall area. 
As a precautionary measure, WDL has also constructed containment walls upstream 
and downstream of the New Alamasi water dam, while buttressing of the New 
Alamasi water dam wall is underway. Various diversion trenches are also being 
constructed to prevent any build-up of water and to enable rainwater to flow 
into the surrounding rivers and streams. 
 
A total of 12.8 million cubic metres of water and tailings material were 
released from the TSF as a result of the breach. A total area of 3.57km2 is 
covered with this material on Williamson's mine lease area with 1.52km2 outside 
the mine lease area. Environmental work to date confirms the tailings material 
which flowed out of the TSF is inert. Water and tailings material samples were 
taken by the Tanzanian Government Chemist Laboratory Authority, which confirmed 
that no dangerous chemicals were found and that all chemicals were within 
normal parameters. This was confirmed by separate, private, laboratory tests. 
Analysis is underway with the assistance of independent experts to ascertain 
appropriate measures for the clean-up or remediation of affected areas. 
 
Petra reconfirms that no fatalities or serious injuries occurred as a result of 
the incident. A temporary rehousing scheme is being planned for the families 
affected by the breach. Interim accommodation and humanitarian relief, 
including psycho-social assistance, continues to be provided to those affected. 
Valuation, land and socio-economic surveys are being implemented with all the 
necessary approvals from the Government. 
 
A socio-economic study, supported by an external social impact specialist, is 
well advanced to determine socio-economic impacts. WDL, along with local, 
Regional and National authorities, continues its extensive engagements with 
local communities to ensure that key stakeholders are kept informed of WDL's 
response, including planned remediation activities. WDL and Petra remain 
appreciative of the continued cooperation and assistance provided by 
Government, community leadership and affected parties. 
 
Technical and Production 
 
Following the visit of a technical team that included independent external 
specialists, the preliminary assessment concluded that the failure mechanism 
was subsidence of a portion of the East wall of the TSF by around 1.5m that 
enabled the water to crest the wall, initiating the breach. The root cause of 
the subsidence has not been determined and will require a forensic geotechnical 
investigation to be completed. This work will be undertaken by an independent 
company specialising in tailings dam design and management. Cost and timing of 
the investigation will be available after a detailed scoping process is 
completed, but initial indications are that this exercise will take between 6 
and 12 months. 
 
In light of the failure of the existing facility, the design of the new TSF is 
currently under review. This is only expected to be finalised in February 2023, 
which will determine the additional construction work required to make the 
facility operational. It is now expected that this new TSF will take longer 
than initially anticipated to become operable.  In parallel, a further 
potential option of repairing and using the existing TSF is also being explored 
as a long-term solution, but this is subject to the outcome of the geotechnical 
investigation. Updates on the progress of these potential long-term solutions 
will be provided in due course. 
 
As a result of the additional work required to progress these long-term 
solutions, interim deposition options are being developed that may enable the 
Williamson mine to resume production around the middle of 2023. These interim 
options may include utilising a portion of the existing or new TSF. The 
Williamson mine will not resume any deposition under these interim options 
until it has been confirmed that it is safe to do so and any necessary 
regulatory approvals have been obtained. Further work is being conducted 
between WDL, Petra's technical team and external specialists to determine the 
best possible options to recommence production safely and as soon as possible. 
As previously stated, accelerated waste stripping and planned maintenance 
activities will continue in order to minimise the impact of lost production. 
This interim plan will be adjusted as we progress the interim options referred 
to above. 
 
WDL is considering additional financing options to provide support during this 
period and is engaging with the Government of Tanzania regarding the sale of 
the previously blocked and confiscated diamond parcel, the proceeds of which 
the Government of Tanzania has agreed to allocate to WDL under the Framework 
Agreement entered into in December 2021. 
 
Further updates will be provided in due course. 
 
Petra currently has a 75% shareholding in WDL, with the Government of Tanzania 
owning the remaining 25%. 
 
This announcement includes inside information as defined in Article 7 of the UK 
Market Abuse Regulation No. 596/2014 and is being released on behalf of Petra 
by the Company Secretary. 
 
                                    Ends 
 
For further information, please contact: 
 
Petra Diamonds, London                  Telephone: +44 20 7494 8203 
 
Patrick Pittaway 
investorrelations@petradiamonds.com 
 
Julia Stone 
 
About Petra Diamonds Limited 
 
Petra Diamonds is a leading independent diamond mining group and a supplier of 
gem quality rough diamonds to the international market. The Group's portfolio 
incorporates interests in three underground mines in South Africa (Finsch, 
Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania 
(Williamson). 
 
Petra's strategy is to focus on value rather than volume production by 
optimising recoveries from its high-quality asset base in order to maximise 
their efficiency and profitability. The Group has a significant resource base 
which supports the potential for long-life operations. 
 
Petra strives to conduct all operations according to the highest ethical 
standards and only operates in countries which are members of the Kimberley 
Process. The Group aims to generate tangible value for each of its 
stakeholders, thereby contributing to the socio-economic development of its 
host countries and supporting long-term sustainable operations to the benefit 
of its employees, partners and communities. 
 
Petra is quoted with a premium listing on the Main Market of the London Stock 
Exchange under the ticker 'PDL'. The Group's loan notes due in 2026 are listed 
on the Irish Stock Exchange and admitted to trading on the Global Exchange 
Market. For more information, visit www.petradiamonds.com. 
 
 
 
END
(END) Dow Jones Newswires
November 30, 2022 02:00 ET (07:00 GMT)
Petra Diamonds (LSE:PDL)
Historical Stock Chart
From Jun 2024 to Jul 2024