REG-Petra Diamonds: Statement re Human Rights Allegations from RAID

Petra DiamondsAnnouncement

12/11/2020 16:15

12 November 2020   LSE: PDL 

Petra Diamonds Limited
("Petra" or the "Company")

Statement regarding allegations of human rights abuses from RAID

Petra Diamonds Limited acknowledges the report published today by the UK-based
Non-Governmental Organisation (“NGO”) RAID entitled ‘The Deadly Cost of
Ethical Diamonds’ (the “Report”) which identifies a number of alleged
human rights abuses relating to the security operations of the Williamson mine
in Tanzania, which are managed by Williamson Diamonds Limited (“WDL”, the
operator of the mine, owned 75% by Petra and 25% by the Government of
Tanzania), a third party security contractor and the local Tanzanian police
force.

As noted in the Company’s announcement on 9 September 2020, Petra takes
these allegations extremely seriously and has been engaging and cooperating
with RAID since being made aware of the allegations on 29 August 2020. 
Copies of the Company’s recent correspondence with RAID (including Petra’s
letter of 11 November 2020, which was sent shortly before the Report was
published so does not appear to have been reflected in the Report) can be
accessed here:
https://www.petradiamonds.com/our-operations/our-mines/williamson/allegations-of-human-rights-abuses-at-the-williamson-mine/.

The Company is working hard to address the allegations as a matter of urgency:
a sub-committee of the Board, comprised entirely of independent Non-Executive
Directors, has been formed to oversee the matter and an investigation has been
initiated and is being carried out by a specialist external adviser in
conjunction with the Company’s lawyers. The investigation is scheduled to be
completed by the end of the calendar year and the Committee will consider the
outcome of the investigation and the recommendations to address any findings.
This may include any required remedy or corrective action to be taken as a
result of the investigation’s conclusions.

Pending the outcome of investigations into the veracity of the claims, WDL has
appointed an external consultancy to conduct an assessment of WDL’s
management of its security in line with the Voluntary Principles on Security
and Human Rights.

Further, a number of enhancement measures have been implemented by WDL, which
address certain of the areas identified in RAID’s ‘Recommendations to
Petra Diamonds’ (covering pages 51 to 52 of the Report), as follows:
1. Development and implementation of a comprehensive Stakeholder Engagement
Plan (“SEP”).  WDL’s SEP demonstrates its commitment to an open and
transparent approach in dealing with its surrounding communities including
sharing information regarding its operations and their impact. The SEP is
focused on community members in the areas surrounding WDL, civil society and
NGOs, Communities Development Committees, as well as Government, Police and
Community Leaders. It focuses on all issues of relevance to WDL stakeholders,
including security and human rights as well as social development.
2. Roll-out of a dedicated Community Grievance Mechanism to provide a standard
structure through which all complaints and grievances, including serious cases
and internal issues are addressed, processed and resolved, and feedback
provided in a timely manner to the communities and aggrieved persons or
complainants.
3. Opening a new, accessible community office and launching a dedicated
grievance desk to accord community members, leaders and anyone with any issues
to raise them in a free, unimpeded and open environment.  The new offices are
located outside the main gates of the mine and are clearly designated using
signs and writings.  The grievance desk is manned by an individual who is
trained in community outreach and has prior experience working closely with
mining communities. There are adjacent offices for private conversations. 
Once in full operation, in addition to interfacing, WDL has plans in place to
provide hotline numbers for calls, messaging and WhatsApp.
4. Development and launch of a new radio programme “Kwa Pamoja Tunajali”
(Together we care) which will be broadcast to all communities around the mine
and other stakeholders.  The interactive radio programmes will provide an
important platform for both WDL and its communities to engage directly,
address concerns collaboratively and as a tool for mass information sharing.
The programming will feature question and answer sessions with the WDL General
Manager, as well as subject matter experts on grievances and other issues of
interest to listeners and communities.
5. Tender process to appoint a new security contractor. The incumbent security
contractor’s contract expires at the end of December 2020 and WDL aims to
have a new security service provider contract in place in January 2021.
6. Suspension of Head of Security and Head of General Services at WDL, pending
the outcome of the investigation. An interim head of security has been
appointed with over 15 years of security management experience including with
NGO's and the UN.
7. Deployment of a stakeholder engagement expert at WDL to provide support to
the General Manager and other mine leadership in their engagement with the
communities and other stakeholders. The scope of the WDL community engagement
expert’s role is to lead stakeholder engagement, including the provision of
high quality and responsive information for stakeholders, and developing
approaches to engagement, collaboration, and innovation that create improved
value for both WDL and its stakeholders.
8. Closure of the on-site facility used as a temporary police post on 29
September 2020. This facility was never operated by WDL or the third party
private security contractor. It was used by the local Tanzanian police force
as a place to detain trespassers on the mine before their transfer, either to
the Maganzo/Kishapo Police station or to Court.
9. Upgrade of the Madwui medical facility to ensure the security of patients
awaiting court appearance: this has been achieved via the installation of a
separate private ward to accommodate those in detention or in police custody.
The private ward stands separate from the common ward and is self-contained
with its own toilets and baths facilities.  All security and medical
personnel at WDL have been reminded of the procedures in providing care to
patients who are detained or in police custody.
Petra has a policy of zero tolerance of any actions by employees, contractors
or other stakeholders that are not in accordance with the Company’s Human
Rights Policy and its Code of Ethical Conduct (both of which can be found on
the Group’s website
at: https://www.petradiamonds.com/about-us/corporate-governance/business-ethics/).

The Company will provide an update to the market when appropriate.

For further information, please contact:

Petra Diamonds,
London                                        
Telephone: +44 20 7494 8203
Cathy Malins                                           
                  investorrelations@petradiamonds.com

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 producing 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. 250 million carats, which supports the potential for long-life
operations.

Petra conducts all operations 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' and is a constituent of the FTSE4Good Index.
The Company’s US$650 million loan notes due in 2022 are listed on the Global
Exchange market of the Irish Stock Exchange. For more information, visit
www.petradiamonds.com.



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