Petra Hit by Strikes at Two Mines

RAPAPORT… 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.