Petra Diamonds Update re Williamson TSF wall breach

 
TIDMPDL 
 
17 January 2023                                                         LSE: PDL 
 
 
                            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 30 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 
 
Precautionary measures, detailed in the announcement of 30 November 2022, to 
contain the tailings material and strengthen the New Alamasi water dam were 
completed in early January 2023. The creation of a safety bund, mitigating risk 
in affected areas, has also been completed. 
 
Environmental assessments, with the assistance of independent experts, continue 
to be carried out by Williamson Diamonds Limited (WDL) to determine how best to 
clean-up or remediate affected areas. Trials are also in place to identify the 
best land use options post remediation of affected areas. To date, these 
studies indicate that areas lying within the Mining Lease Area (MLA) are best 
suited to be returned to wilderness, either as forest or wetlands, through 
amelioration of the soil and revegetation. Areas outside of the MLA are treated 
according to the depth of tailings material, where thinner layers of tailings 
can be mixed into the surrounding soil and thicker layers can be used for 
agricultural purposes following trials which demonstrate that enrichment with 
compost will enable cash crops to be farmed on a viable basis. 
 
Since initial estimates announced on 10 November 2022, it has been confirmed 
that a total of 286 individuals from 50 houses were relocated as a result of 
the breach. Of these, 130 individuals from 22 houses returned back to their 
former homes which have been deemed safe. 145 individuals from 23 houses are 
currently accommodated in houses rented by WDL and 11 individuals from five 
rental houses have secured alternative rental accommodation. All affected 
households have been provided with accommodation and humanitarian relief within 
the village they were displaced from. 
 
In addition, the vulnerability of affected people is an important consideration 
and a key component of WDL's work. Psychosocial support is being provided and 
once any issues are identified, a mitigation process is implemented. 
 
The evaluation of impacted livelihoods, undertaken by WDL and independent 
experts, to ensure that affected individuals are appropriately compensated is 
nearing completion. Once finalised, a report will be submitted to government 
authorities for approval. Once approval is received, WDL will commence with 
initial restoration measures (including monetary and in-kind compensation 
measures). 
 
Alternative agricultural land is being identified to enable farming activities 
for those affected to recommence as soon as possible and this work is ongoing 
in keeping with Tanzanian law and international standards for resettlement. 
 
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. 
 
Technical and Production 
 
As announced on 30 November 2022, the root cause of the subsidence that led to 
the breach has not yet been determined and requires a forensic geotechnical 
investigation including detailed InSAR  analysis to be completed. This work has 
been initiated and is being undertaken by an independent company that 
specializes in tailings dam design and management. Estimates for completion of 
these studies remain between 6 and 12 months. Petra continues to work 
constructively with the Tanzanian Mining Commission and key findings will be 
published once complete. 
 
A comprehensive risk assessment is underway at all of the mine's tailings 
facilities. Work to identify the best interim tailings storage facility is 
continuing with external experts from Tanzania and South Africa. Once competed 
a detailed report will be forwarded to the Government of Tanzania for approval. 
This will allow startup of production to commence while work is being conducted 
on the longer-term tailings storage solution. The current estimate of 
production resuming at the beginning of FY 2024 remains. 
 
Financial 
 
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 at the end of December 2021. 
 
WDL and Petra remain appreciative of the continued cooperation and assistance 
provided by Government, local authorities, community leadership and affected 
parties. 
 
Further updates will be provided in due course. 
 
                                    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
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