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Petra Hit by Strikes at Two Mines

Workers are striking at two Petra Diamonds projects in South Africa.

Industrial action has been disrupting operations at the Finsch and Kimberley mines since Monday night, Petra said in a statement Tuesday. The miner said it could suffer “labor-relations volatility” as it finalized a new wage agreement for its operations in the country.

“The company is currently assessing the impact on both operations,” Petra said. “Although underground and surface mining have been affected, plant treatment is continuing at near-normal capacity at both operations, treating surface material and available stockpiles.”

Petra is in discussions with the National Union of Mineworkers to find a solution, and is managing the situation to ensure minimal impact on its overall production, the company said. Normal operations continue at its Cullinan and Koffiefontein mines.

The rough producer’s share price fell 5% in early trading Tuesday, says Rapaport.

Source – Rapaport