Petra Shutters Tanzanian Mine After Diamond Shipment Seized
- Government suspects parcel of diamonds was undervalued
- Company’s stock slumps in London as staff questioned
This article is for subscribers only.
Petra Diamonds Ltd. halted production at its mine in Tanzania after the government seized a parcel of diamonds suspected of being undervalued, as a dispute between the state and foreign-owned mining companies widens. Petra shares fell the most in 16 years.
Employees of the Johannesburg-based company are cooperating with the authorities in the East African nation who are investigating a shipment of 71,654 carats of gems that was blocked from export to Petra’s offices in Antwerp, according to a statement released in London on Monday. Finance Minister Philip Mpango on Saturday threatened to nationalize the consignment after the government found the parcel of gems was worth more than the company said it was.