Petra Diamonds
Limited
Findings of the independent Board
Sub-Committee investigation into alleged breaches of human rights
at the Williamson Diamond Mine in Tanzania
Summary
Petra Diamonds Limited (the “Group”, “PDL”, “Petra” or “the
Company”) today issues the findings of its independent Board
Sub-Committee in relation to alleged breaches of human rights at
the Williamson Diamond Mine (“the Mine”) in Tanzania raised by the UK law firm,
Leigh Day and the independent NGO,
Rights and Accountability In Development (“RAID”). The Mine is
operated by Williamson Diamonds Limited (“WDL”), which is 25% owned
by the Government of Tanzania and
75% owned by Petra. Petra acquired its majority interest in WDL in
2009.
WDL and Petra have taken the human rights allegations mentioned
above extremely seriously. They have sought to gain a full
understanding of the allegations through an external investigation,
with the aim of:
- understanding what happened;
- supporting the provision of a balanced and fair remedy, in the
interest of all parties; and
- putting in place preventative measures to address the issues
identified.
This announcement presents the findings of the independent Board
Sub-Committee formed to investigate the allegations. It also
provides detail on the measures put in place by WDL and Petra both
immediately after being notified of the allegations and
subsequently in response to the findings of the external
investigation.
Based on the conclusions of the independent Board Sub-Committee,
the Company 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.
The Company took immediate precautionary measures to address the
concerns raised, ahead of the findings of the investigation and in
order to mitigate the risks of future incidents. These measures
included:
- The closure of the holding facility at the mine
- The appointment of a new third party security contractor
- The suspension of personnel implicated
- Deployment of a stakeholder engagement expert and a
comprehensive engagement plan with the affected communities
- The implementation of a Community Grievance Mechanism to deal
with any day-to-day issues
- The design of an Operational Grievance mechanism (“OGM”) aimed
at addressing any historical, or future human rights violations,
and the upgrading of the Mwadui medical facility
As announced today, Petra has reached a settlement, on a no
admission of liability basis, in relation to claims brought in
London (“the Claims”) by
Leigh Day, on behalf of the
anonymous claimants, in
relation to alleged breaches of human rights, associated with
third-party security operations, within the SML.
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, which Petra has committed to
invest in programmes dedicated to providing long-term sustainable
support to the communities living around the Mine.
The OGM is being funded by PDL and will be aligned with industry
best practice as advocated by the United Nations Guiding Principles
on Business and Human Rights. The OGM is specifically aimed at
considering incidents at the Mine involving any additional
historical incidents, and any future human rights claims, and
providing redress where necessary.
PDL will separately fund a Gender Based Violence (“GBV”)
campaign aimed at providing education and information to the groups
most vulnerable to gender violence. The campaign aims to strengthen
the local capacity of government, organisations, and communities in
order to establish a long-lasting culture change, with greater
accountability and community-wide awareness.
Commenting, Peter Hill, Non-executive Chairman of Petra
Diamonds Limited, said:
“The Company, Board and Management
are greatly saddened and concerned by the findings of the
investigation and we all regret the loss of life, the injuries and
the mistreatment of illegal diggers that the investigation has
found to have taken place. The actions being put in place, combined
with the agreement reached with the claimants, are aimed at
providing redress and reducing the risks of future incidents
occurring. This is in keeping with our approach throughout, where
we have tried to provide fair remedy, in the interest of all
parties, based on a detailed, balanced and independent
understanding of the allegations made.
Petra’s CEO, Richard Duffy, took immediate action upon being
made aware of the allegations in 2020. The wider Petra Board have been equally determined to
address the shortcomings identified, and have taken remedial
actions where necessary to minimise the risks of reoccurrence of
similar events, recognising that WDL’s small yet high value
products will always attract individuals and syndicates looking to
exploit these for their own gains.”
Background
The WDL SML covers an area of 30.6km2 in the
Shinyanga province in north-western Tanzania and is one of the world’s largest
kimberlite resources. Between 2011 and 2021, security operations at
the mine were provided by a third-party security contractor, Zenith
Security and on 1 March 2021 Zenith
Security was replaced by a new security provider, GardaWorld.
Throughout the period the Tanzanian Police Force has also been
actively involved in security operations at the mine.
Even prior to Petra’s acquisition of its stake in WDL in 2009,
the mine has been the subject of repeated incursions by illegal
diggers. While for many, illegal mining is a means of supplementing
income, there is evidence of organised incursions, anecdotally
sponsored by illicit diamond dealing syndicates. Parties of illegal
diggers range from small, to much larger groups of up to 200
people, with some armed with slingshots, machetes and clubs. Some
members of Zenith Security were armed with shotguns and since
October 2013 were instructed to only
use non-lethal rubber baton rounds. The Tanzanian Police Force were
equipped with firearms, stun grenades and tear gas. A Memorandum of
Understanding (“MoU”) was signed between the TPF and WDL in
May 2019, which stated that “The
parties recognise the importance of actions consistent with the
terms of the Voluntary Principles on Security and Human Rights,
promoting and protecting human rights and fundamental freedoms”.
Although the majority of incursions on to the SML by illegal
diggers were dealt with peacefully, there have been a number of
incidents involving violence.
Allegations
In May 2020, Leigh Day notified the Boards of Petra and WDL
that it had issued claim forms in the High Court of England and Wales on behalf of 32 anonymous individuals in
relation to alleged breaches of human rights, personal injuries and
deaths suffered at and surrounding the Mine, arising
from the security operations. Additionally, in November 2020 RAID published a report outlining
similar allegations, during the same period. Leigh Day subsequently expanded the number of
anonymous claimants to 72 while RAID expanded the scope of their
own allegations.
Petra formed an independent Board Sub-Committee comprised
entirely of independent Non- executive Directors to oversee the
matters and undertake an investigation into the allegations. The
Sub-Committee was supported in its investigation by the specialist
external investigator Control Risks, in conjunction with lawyers
Freshfields Bruckhaus Deringer LLP.
The Sub-Committee has considered the conclusions of the
independent external investigator, which has carried out a thorough
investigation, including at the Mine in Tanzania and at PDL, interviewing past and
present WDL and PDL managers and Board members, Zenith Security
staff and representatives of the local community. Processes and
communication within and between WDL and PDL were also
investigated.
Investigation Findings
The Sub-Committee found evidence of many incursions onto the SML
by illegal diggers. In the years between 2012 and 2020 alone, there
were over 7,100 recorded incursions onto the SML, which resulted in
more than 1,700 arrests taking place.
While most of these incursions were resolved peacefully, there
is evidence of many incidents of aggression, both on the side of
the illegal diggers as well as that of the security providers.
These incidents of aggression sometimes resulted in injury to
individuals on both sides, as well as damage to property and
equipment, including vehicles used by the TPF and Zenith
Security.
The exact details and number of incidents, which resulted in the
loss of life, injury or mistreatment of illegal diggers, is
difficult to determine with accuracy. The investigative team often
needed to rely on a small number of accounts, which sometimes
conflicted. This inconsistency is understandable, given the length
of time since many of the alleged incidents took place, combined
with many of the incidents having taken place during the hours of
darkness. A further challenge to the investigation has been the
inability to corroborate the accounts of the claimants due to their
anonymity.
The investigation has established that during the period there
were 12 confirmed deaths of illegal diggers, with the likely deaths
of four others. The available evidence is that of the 12, some were
killed by Zenith Security personnel and at least one by the
Tanzanian Police Force, all during violent confrontations. In one
case, in 2014 a Zenith Security guard was arrested after shooting
an illegal digger and subsequently jailed for manslaughter
following a trial in Tanzania.
With the exception of the one individual referred to above, it has
not been possible to establish if in any of the other deaths Zenith
Security personnel were criminally liable. The deaths were
reportedly notified to the TPF and WDL remains committed to
cooperating with the relevant prosecuting authorities as
appropriate. The investigation also found no evidence that any
deaths or shootings were carried out by WDL’s own personnel.
The investigation established that Zenith Security and the TPF
also caused a number of injuries to illegal diggers and that
excessive force may have been used on occasion. Records also show
that many Zenith Security guards and members of the Police were
also injured.
Allegations have been made that Zenith Security personnel
adapted their ammunition to fire stone pellets or metal projectiles
instead of the authorised rubber baton rounds. While this has been
established in relation to one incident in 2016, where the Zenith
Security guard was jailed for six months, evidence suggests this
may have happened on more than one occasion.
Prior to and during the investigation, allegations of GBV
suffered by women on the SML were raised. Given the sensitivity
around these potential incidents and the reluctance of any
potential victims to provide further information on these
allegations, stakeholder engagement around the establishment of the
independent OGM will specifically address this point, while the GBV
campaign will further assist in this regard.
Some of the allegations relate to alleged mistreatment of
illegal diggers inside the Mwadui hospital, that is owned and
operated by WDL, including the handcuffing of patients to beds.
While it is considered standard practice in Tanzania for officers to guard individuals who
are under arrest while they are in hospital and/or to handcuff
patients if the police deem it necessary, WDL has stopped this
practice at the Mwadui hospital and implemented other changes and
improvements which include the installation of a separate, secure
private ward to accommodate those in detention or in police
custody.
There were other allegations relating to the mistreatment of
illegal diggers detained at the holding rooms at the entrance to
WDM. The holding rooms were initially operated by Zenith Security,
but since 2016 were operated by the TPF, and not by WDL as has been
alleged. The investigation has shown, however, that Zenith Security
was in de facto control of the holding rooms at times after 2016.
The rooms were closed by WDL on 29 September
2020.
It has been established that WDL management were aware of the
situation on the ground and that details of many of the incidents,
including relating to some of the fatalities as well as the
allegations made in the early to mid 2010s, were known at
reasonably senior levels within PDL and WDL but were not escalated
to the PDL Board. It has similarly been established that since the
formation of PDL’s Executive Committee in 2019, incidents and
allegations, including those in 2019 by the Kimberley Process Civil
Society Coalition, were not reported to it nor to the PDL Board.
The Sub- Committee investigation, which included tracking PDL
internal email communications, found no information to suggest
information was escalated, substantiating the lack of PDL Board
knowledge. As detailed below, the WDL and PDL reporting structures
have been revised and revamped, to enable timely and accurate
reporting of all incursions and incidents, with information now
flowing through two independent reporting lines, greatly enhancing
the level of information available at Board and senior management
level.
Actions Taken
PDL has sought to gain a full and fair understanding of the
events, so that appropriate remedy can be provided, and the
necessary steps are taken to address issues. The main actions taken
by both WDL and PDL, including enhancement measures already
implemented to address identified shortcomings, can be summarised
as follows:
Governance and accountability
1.
The Company has acted decisively to hold relevant individuals to
account: based on the investigation findings the Board concluded
that while there was no evidence that WDL or PDL employees directly
caused the incidents, certain senior managers fell short in
carrying out their duties and responsibilities, including ensuring
that pertinent information was conveyed to the WDL and PDL boards.
Given the severity of the issues, these omissions are highly
regrettable. Appropriate disciplinary processes have been
instigated. In addition, certain individuals have left or will be
leaving the Company.
2.
Reporting structures at WDL and PDL have been revised to address
historical gaps and ensure accountability, enabling the more
timely, accurate and transparent reporting of all incursions and
incidents. The revisions entail a new incident escalation procedure
to PDL, including fully transparent reporting to the PDL Board, as
well as to the Audit and Risk, and the Social, Ethics and Diversity
Committees through two independent reporting lines.
3.PDL will be
appointing a Group General Counsel to, inter alia, oversee
governance, compliance and ethics in the business, providing
further oversight of PDL’s activities and operations.
Security and Voluntary Principles on
Security and Human Rights (“VPSHR”)
1.
The Company appointed a new security contractor: GardaWorld West
Security Limited, a member of the international GardaWorld Group,
on 1 March 2021. VPSHR training has
been reconfigured and new rules of engagement together with clearer
reporting lines have
been established, including monitoring the actions of the
security contractor and the TPF, to ensure full compliance with the
VPSHR.
2.
Closure of the on-site facility used as temporary holding rooms on
29 September 2020.
3.
Welfare of patients awaiting court appearance at the Mwadui medical
facility has been secured through upgrades to the facility,
including the installation of a separate self- contained private
ward, with its own facilities. Security and medical personnel at
WDL have been reminded of the required procedures in providing care
to patients who are detained or in police custody. Individuals who
allege that they were harmed at the Mine and treated at Mwadui
hospital will be allowed to access their medical records.
4.
Rolling out of a VPSHR awareness campaign: this campaign targets
Petra and WDL executives and senior managers, as well as the entire
security teams at both Group and mine level in Tanzania and South
Africa.
5.
Update of the Company Human Rights Policy Statement: an updated
policy statement was approved by the Board on 10 September 2020 and is available on the
Company’s website at
https://www.petradiamonds.com/about-us/corporate-governance/business-ethics/.
A revised version is planned to be released later this year by the
Company’s SED Committee and new monitoring procedures have been put
in place to ensure compliance with the Policy.
6.
The Company is also implementing a Human Rights Defenders Policy,
which will set out clear requirements in relation to non-harassment
and victimisation to safeguard against future harm or
intimidation.
Stakeholder engagement
1.
Deployment of a stakeholder engagement expert at WDL, to improve
collaboration and create value for both WDL and its stakeholders.
The role entails supporting the mine leadership in their engagement
with local communities and other stakeholders, including the
provision of high quality and responsive information for
stakeholders and developing innovative approaches to
engagement.
2.
Development and implementation of a comprehensive Stakeholder
Engagement Plan (“SEP”) for WDL. The SEP will ensure a commitment
to open and transparent interaction with the surrounding
communities; it is focused on community members in the surrounding
areas, civil society, NGOs, Communities Development Committees,
local Government, the TPF and Community Leaders. The SEP is focused
on all issues of relevance to WDL stakeholders, including security,
human rights and social development.
3.
Opening a new community office inside the main gates of the Mine,
with a dedicated grievance desk to enable all stakeholders to raise
issues in a free and unimpeded environment. The desk is manned by
persons trained in community outreach and with prior experience of
working closely with mining communities. Once it is in full
operation, WDL also has plans to provide hotline numbers for calls,
messaging and WhatsApp engagement.
4.
Development and launch of a new radio programme “Kwa Pamoja
Tunajali” (“Together we care”): to provide a key platform for WDL
and its communities to engage directly, address concerns
collaboratively and to facilitate local information sharing.
OGM, and Restorative projects
1.
Following the establishment of the Community Grievance Mechanism,
an independent (Tier 2) OGM is being established. It will consider
any incidents of potential human rights violations and provide
remedy as necessary. 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 aims to investigate and resolve complaints following the
application of local legal requirements, including the provision of
free and independent advice from local lawyers. PDL and WDL
encourage any community members
subject to any human rights violations to utilise the OGM, which
is expected to be operational by the end of this year. PDL and WDL
will also collaborate and engage with any criminal investigation
should an individual wish to lodge a complaint with the relevant
authorities in Tanzania.
2.
Community initiatives to support the local economy, intended to
provide long term sustainable benefits through income generating
projects, with in excess of £1 million of agreed funding committed
by PDL as described above. Projects include:
a)
Feasibility studies into a formalised artisanal tailings project at
WDM and an agri- business project,
b)
The implementation of these projects based on the outcomes of the
feasibility studies,
c)
The establishment of enhanced community clinical and medical
support,
d)
Managed access to parts of the SML, to collect firewood and graze
animals,
e)
Launch of a GBV campaign to provide specific support and
counselling for victims of gender-based violence.
For all restorative projects listed above, Petra will work as
necessary with the surrounding communities and specialist external
consultants and local NGOs to support the design and implementation
of these projects. Further information will be provided on PDL’s
website in due course.
The approach throughout this process has been to provide full
and fair remedy and to limit, in so far as possible, the
reoccurrence of incidents, recognising that it will never be
possible to completely eradicate illegal incursions, given the
nature of the product being mined and the fact that diamonds are a
small, easily transportable and valuable commodity that can
meaningfully alter the lives of some members of the local
community. The PDL Board is committed to the initiatives set out
above and will continue to monitor the effects of the actions
taken.
For further information, please contact: |
~ Ends ~ |
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Petra
Diamonds, London
Marianna Bowes |
|
Telephone: +44 20 7494
8203 investorrelations@petradiamonds.com |
Celicourt (PR Advisor)
Philip Dennis Jimmy Lea |
|
Telephone: +44 20 8158 5829 Petra@celicourt.uk |
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.