Industry News by Nemesis

Petra Hit by Strikes at Two Mines

September 19, 2017

Workers are striking at two Petra Diamonds projects in South Africa, adding to the company’s woes amid uncertainty over the future of another mine in Tanzania. 

Industrial action has been disrupting operations at the Finsch and Kimberley mines since Monday night, Petra said in a statement Tuesday. The miner had warned investors Monday that it could suffer “labor-relations volatility” as it finalized a new wage agreement for its operations in the country. 

“The company is currently assessing the impact on both operations,” Petra said. “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.” 

Petra is in discussions with the National Union of Mineworkers to find a resolution, and is managing the situation closely to ensure minimal impact on its overall production, the company said. Normal operations continue at its Cullinan and Koffiefontein mines, it added.

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. 


Source: Rapaport

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