Ore processed at Petra Diamond’s Williamson diamond mine, in Tanzania increased 22 per cent year-on-year in Q3, 2022 the company said in its latest production update.
Through the update, London-listed Petra Diamonds announced that it had concluded the framework agreement with the government of Tanzania in December.
“As part of that framework agreement, we referenced the seized parcel of diamonds, which was around $14-million to $15-million. That framework agreement references that the government of Tanzania would contribute the proceeds from the sale of that parcel to the mine itself. That was set out in the agreement,” Petra CEO Richard Duffy said.
He said there were also various payments that the mine would make as part of that settlement, to the government of Tanzania with regard to the rare pink diamond set to be auctioned.
“The parcel has not yet been sold. The proceeds from the parcel once sold will be contributed to Williamson. That has not yet happened and we continue to engage with government. The agreement is not yet effective. We are in the process of completing some conditions precedent and getting various regulatory approvals. That’s all happening, but it hasn’t concluded as yet,” Duffy added.
Meanwhile, Petra Diamonds remains in a strong position, being considerably more resilient through its strengthened balance sheet and the implementation of its operating model, together with ongoing cash generation.
Petra CEO Richard Duffy highlighted this before reiterating guidance for the company’s financial year 2023 (FY23) and taking comfort from the underlying fundamental market support as a result of the structural supply deficit, regardless of any short-term volatility relating to prevailing macroeconomic challenges.
The London Stock Exchange-listed Jersey-headquartered diamond mining and marketing company produced 763 220 ct in the three months to the end of September, when 3 147 731 t were treated, 520 000 ct sold, and $104.3-million worth of revenue generated.
Finsch production was 2 per cent higher than in the last quarter of the 2022 financial year and Cullinan production was down 13% year-on year to 763 220 ct owing to lower grades.
Options for a responsible exit at Koffiefontein diamond mine are being explored as the mine approaches the end of its mine plan. This is being done in close consultation with its stakeholders, in particular the workforce.
The company has maintained its production guidance for the year, although this will likely be towards the lower end of the range for Cullinan mine and Finsch, the company stated in a release to Mining Weekly.