AfricaPress-Tanzania: Petra Diamonds has upheld the closure and force majeure at Williamson mine in Mwadui, Shinyanga due to coronavirus pandemic.
Petra, operating the largest diamond mine in the country, first announced force majeure and closure of operation from mid-last month but upheld the move till diamond market improved.
The firm said in a statement issued last Friday that the decision was necessary to preserve the Williamson mine’s cash position in order to protect the long-term sustainability of the operation.
“The company will look to resume operations once diamond prices are at a level that makes it operationally sustainable,” the statement said.
The market uncertainty environment, forced Petra to declare force majeure placed mine operation on care and maintenance, with only essential services to protect the mine’s assets and resources.
Richard Duffy, Chief Executive of Petra Diamonds, said they remained focused on taking all actions necessary to support the measures to limit the outbreak of COVID-19 and decrease the threat to their employees, contractors and other local stakeholders.
“Our overriding priority remains the health, safety and wellbeing of our people, following all relevant guidelines to minimise the risk to our operations and support the control of the spread of COVID-19 in our countries of operation,” Mr Duffy said in a statement.
He added: “We are also very mindful of the huge economic toll that this pandemic will place upon our countries and local stakeholders”.
The country so far has reported 480 cases and 16 death and 167 recoveries of COVID-19.
Furthermore, Petra announces the reduction in management salaries to provide the basis for its newly established Petra Hardship Fund, which will contribute to addressing the needs of the most distressed amongst its employees and the wider communities.
The salaries of Chief Executive and Finance Director will be reduced by one third, the salaries of Non-Executive Directors and other members of the Executive Committee will be reduced by 25 per cent.
Also senior managers reporting to the Executive Committee members (including the mine Operations Committees) could also participate in this initiative with a reduction of up to 20per cent of their salaries, at their discretion.
The funds raised from the salary reductions will be utilised to provide targeted assistance to distressed communities and qualifying employees to mitigate the impact of pandemic.
“A committee has been established to oversee the management and disbursement of these funds, which will be awarded on the basis of greatest need,” Petra said.
Petra is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market.
The company has three underground producing mines in South Africa—Finsch, Cullinan and Koffiefontein—and one open pit producing mine in Tanzania (Williamson).
