PDL Petra Diamonds Limited

 
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 
 
 

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