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.