Petra Diamonds Settlement of human rights claims at Williamson
May 12 2021 - 6:30AM
UK Regulatory
TIDMPDL
12 May 2021 LSE: PDL
Petra Diamonds Limited
("Petra" or the "Company" or the "Group")
Settlement of human rights claims at Williamson Diamond Mine, Tanzania
Petra Diamonds Limited today confirms that a settlement has been reached, on a
no admission of liability basis, in relation to claims brought in London ("the
Claims") by Leigh Day, a UK based law firm, on behalf of 71 anonymous
claimants, in relation to alleged breaches of human rights, associated with
third-party security operations, at the Williamson Mine ("the Mine") in
Tanzania. The Mine is operated by Williamson Diamonds Limited ("WDL"), which is
25% owned by the Government of Tanzania and 75% owned by Petra.
The agreed total settlement figure is £4.3 million, which includes the sum to
be distributed to the claimants by Leigh Day, a contribution to the claimants'
legal expenses, and significant funds that Petra has committed to invest in
programmes dedicated to providing long-term sustainable support to the
communities living around the Mine.
The agreement also includes a framework pursuant to which an additional payment
will be made by Petra in respect of up to 25 additional potential claimants who
have come forward during the final stages of the settlement negotiations.
Following its investigation, Petra acknowledges that past incidents have taken
place that regrettably resulted in the loss of life, injury and the
mistreatment of illegal diggers, within the WDL Special Mining Licence area
("SML"). The incidents in question involved WDL's third- party security
provider Zenith Security as well as the Tanzanian Police Force ("TPF"). During
the investigation, no evidence emerged that WDL personnel were directly
involved in these actions.
While PDL is not directly involved in operations at the Mine and had no direct
involvement in the events, it believes that the agreed settlement balances the
interests of its stakeholders with those of the local community and avoids
contesting protracted and expensive litigation where, even if Petra prevailed,
it is unlikely that its own legal costs would have been recoverable.
Petra is also establishing a new and independent ("Tier 2") Operational
Grievance Mechanism ("OGM"). It will be managed by an independent panel and
operate according to the highest international standards, as set out in the
United Nations Guiding Principles on Business and Human Rights. It will
consider any incidents of potential human rights violations and provide remedy
as necessary. PDL and WDL encourage any community members subject to any human
rights violations to utilise the OGM. The establishment of an OGM is in keeping
with the Company's support for the local community and the provision of fair
remedy. Individuals who allege that they were harmed at the Mine and treated at
Mwadui hospital will be allowed to access their medical records.
The commitment to invest significant funds in community projects is intended to
provide long
term sustainable benefits to local communities through income generating
projects, including; a feasibility study into a formalised artisanal mining
project at the Mine, an agri-business project, a programme which provides
medical support to the community, and arrangements pursuant to which local
residents will be permitted to access certain parts of the mine to collect
firewood and/or graze animals. In doing so, Petra will work with specialist
external consultants and local NGOs to ensure that these programmes are
designed and implemented in a collaborative and beneficial way.
As has been announced previously, upon being notified in 2020 of the
allegations, the Company immediately formed a sub-committee of the Board,
comprised entirely of Independent Non-executive Directors, to look into the
security operations at the Mine and has undertaken an investigation carried out
by a specialist external advisor, in conjunction with the Company's lawyers.
The Board's conclusions in relation to the investigation and details of the
actions taken, have been published separately.
Based on the Board's conclusions, appropriate disciplinary processes have been
instigated. In addition, certain individuals have left or will be leaving the
Company. Operational reporting lines in relation to incidents have been
restructured and a revised incident escalation procedure has been put in place.
These initiatives are expected to greatly enhance the oversight and
accountability of security operations at the Mine going forward.
Commenting, Peter Hill, Non-Executive Chairman of Petra Diamonds Limited, said:
"The Company, Board and Management are deeply concerned and saddened by the
allegations, which relate to the treatment of illegal diggers and others on or
around the Williamson mine site in Tanzania, by third-party security providers.
The Board regrets the loss of life, injury and mistreatment that appears to
have taken place around the mine. The agreement reached with the claimants,
combined with the other actions put in place, are aimed at providing redress
and preventing the possibility of future incidents. These actions are in
keeping with our approach throughout, which is to provide fair remedy, in the
interest of all parties, based on a full, balanced and impartial understanding
of the allegations made. An external investigation has taken place and we have
today published the Board's conclusions and details of the actions that have
been taken."
Ends
For further information, please contact:
Petra Diamonds, London
Telephone: +44 20 7494 8203 Marianna
Bowes
investorrelations@petradiamonds.com
Celicourt (PR Advisor)
Telephone: +44 20 8158 5829
Philip
Dennis
Petra@celicourt.uk
Jimmy Lea
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and a consistent
supplier of gem quality rough diamonds to the international market. The Company
has a diversified portfolio incorporating interests in three underground
producing mines in South Africa (Finsch, Cullinan 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 of ca. 243 million
carats, which supports the potential for long-life operations.
Petra strives to operate according to the highest ethical standards and will
only operate in countries which are members of the Kimberley Process. The
Company 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 Company's US$337 million loan notes due in
2026 will be listed on the Global Exchange market of the Irish Stock Exchange.
For more information, visit www.petradiamonds.com.
END
(END) Dow Jones Newswires
May 12, 2021 07:30 ET (11:30 GMT)
Petra Diamonds (LSE:PDL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Petra Diamonds (LSE:PDL)
Historical Stock Chart
From Apr 2023 to Apr 2024