Diamond miner Petra Diamond’s Tanzania-based Williamson mine has been on care and maintenance since mid-April, with only essential services being carried out to protect the mine’s assets and resources.

The original decision was announced in the Market Update on April 9, 2020, when the company stated the action was taken on account of the unprecedented depressed market environment, largely owing to the Covid-19 pandemic.

In July, Petra announced the full-year results for 2020 with Williamson’s production totalling 298 139 ct (compared with 399 615 ct in 2019), having been impacted on by the pit slump of about 1.3-million tonnes that occurred in January 2020, as well as the decision to place the mine on care and maintenance.

At the time, Petra noted that discussions with the Tanzanian government in relation to various issues, including the overdue value-added tax receivables and a blocked diamond parcel, were ongoing, but had been interrupted by the Covid-19 outbreak.

Capital expenditure (capex) for Williamson amounted to $8-million for the 2020 financial year (FY), mainly spent on in-pit waste removal and concurrent slimes dam extensions, as well as the extension of the tailings disposal infrastructure.

The 2021 FY capex is guided at about $7-million for the ongoing waste removal and concurrent slimes dam extensions, as well as the completion of the tailings disposal facilities. It also includes stay-in-business capex.

Meanwhile, as reported in Mining Weekly last month, ongoing uncertainty around the impact of Covid-19 has ensured that the production guidance for 2021 FY remains suspended, despite the South African mines generally operating at planned levels.

The article noted that Petra performed well during the three months to September 30, with record carat production at the Cullinan mine during August and September.

Further, while overall group production for the quarter decreased by 10% year-on-year to 974 346 ct, mainly owing to a lack of production from the Williamson mine, revenue for the period increased by 33% to $82-million as a result of the release of inventory carried over from the quarter ended June 30.

Petra Diamonds is continually evaluating when it can recommence operations at Williamson, subject to more favourable market conditions.