Petra Diamonds hit by strike, shares extend losses

Petra Diamonds shares fell 4 percent on Tuesday after the miner said it had experienced labour disruption overnight at its Finsch mine and Kimberley Ekapa Mining JV operations in South Africa.

Members of South Africa’s National Union of Mineworkers (NUM) are on strike over pay, regional secretary Cornelius Manhe said, after more than 600 members downed tools on Monday.

The London-listed miner had warned on Monday that there could be labour unrest as it finalises a new wage agreement for its operations in South Africa, sending its shares down 7 percent on the day.

It also said on Monday that it had resumed operations at its Williamson mine in Tanzania after a four-day stoppage, adding that its full-year production target remains unchanged.

Petra Diamonds had halted operations at the mine last week after the Tanzanian government seized a consignment of diamonds and questioned Petra personnel as part of a crackdown on the mining sector.