Petra in Talks with Tanzanian Government

Dar Es Salaam: Petra Diamonds said it is in talks with the Tanzanian government concerning requirements that the group offer a 30 percent stake in the Williamson diamond mine to Tanzanian interests as well as list on the Dar es Salaam stock exchange. The Tanzanian government already owned a 25 percent stake in the Williamson mine.

Asked by an analyst during a conference call to comment on the new regulations by Dar es Salaam, group chief executive Johan Dippenaar was quoted by MiningMx as saying that he did not want to “get ahead” of the outcome of the discussions with the government.

Tanzania introduced new regulations to promote local ownership and build the country’s capital markets with a deadline of August 23 this year set for mining companies operating in the country to comply.

Meanwhile, Petra said it produced 999,768 carats during the third quarter of the fiscal year 2017 compared with 995,905 carats, a year earlier as output from tailings and open pit volumes at the Williamson mine and the Kimberley operations in South Africa were affected by “unseasonably high rainfall.”

Revenue was down 1 percent to $119.1 million during the period under review from the previous year’s $120.5 million. Its cash at bank was $66.2 million as at 31 March 2017 up from $39.0 million during the same period last year.

It had diamond inventories of $49.3 million as at 31 March 2017 down from $54.3 million a year earlier.

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