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.