Where we operate

Petra focuses on Southern Africa, with a well-diversified portolio of five producing mines in South Africa and Tanzania

Petra has interests in six producing operations: five mines in South Africa (Finsch, Cullinan, Koffiefontein and Kimberley Underground), extensive tailings operations in Kimberley and one mine in Tanzania (Williamson).

The Company also maintains an exploration programme in Botswana and South Africa, but these projects are still early stage and no mining licences have been applied for as yet.

South Africa


Summary of mining legislation

The mining industry in South Africa is highly regulated in terms of its social and environmental performance, with companies having to uphold stringent standards, which in some cases go beyond the requirements of many international best practice guidelines, in order to maintain their licence to operate.

The primary legislation governing exploration and mining activities in South Africa is the Mineral and Petroleum Resources Development Act, 28 of 2002 (“MPRDA”). In terms of the MPRDA, custodianship of the mineral resources of South Africa vests in the South African Government (“Government” or “State”) and the Government grants, issues and administers prospecting and mining rights.

As a result of a policy shift from private ownership of mineral rights to the principle of State custodianship set out in the MPRDA, the MPRDA had to contain certain transitional provisions enabling holders of prospecting and mining rights existing under the previous dispensation to convert their old order rights to new order rights. Holders of old order mining rights, for instance, had a period of five years to lodge their old order mining rights for conversion to new order mining rights.

Three principal documents need to be submitted with the application for a Mining Right:

  • a Mine Works Programme (“MWP”) which outlines the resource, how it is to be mined and the timelines and resources involved;
  • an Environmental Management Plan (“EMP”) that outlines the environmental management processes to be followed during operations, as well as the rehabilitation to take place before issuing of a closure certificate will be applied for; and
  • a Social and Labour Plan (“SLP”) that defines an operation’s obligations in terms of social, labour and community issues. The SLP of an operation forms the basis for its activities and performance indicators over a five-year cycle, following which a new SLP needs to be consulted with stakeholders and approved by the Department of Mineral Resources (“DMR”).

Granting or transfer of a Mining Right is subject to acceptance and approval of these documents by the DMR, which will be based on clear demonstration that the resulting mining operations will benefit the “triple bottom line” in a coordinated way.

Black economic empowerment (“BEE”) legislation

Mine health and safety legislation

The Mine Health and Safety Act, 1996 (Act No. 29 of 1996) as amended, provides for the protection of the health and safety of employees and other persons affected by the South African mining industry and, amongst others, provides for the promotion of a culture of health and safety as well as the enforcement of health and safety measures or legislation.

The main functions of the Mine Health and Safety Inspectorate of the DMR are the provision of policy inputs for the establishment and application of mine safety standards at mining operations; policy inputs towards the establishment and application of mine equipment safety standards at mining operations; the establishment and application of mine health standards at mining operations and promotion of the application of the standards mentioned, and ensuring an effective support and inspection service.

Taxes and royalties

Corporate tax: 28%

Diamond royalty: 0.5 up to 7% (formula based on profitability of mining operation); guidance on how to calculate the royalty is provided on our Analyst Guidance page.

Rough diamond export levy: 5% (certain exemptions apply)

Diamonds Act

Possession and dealing in rough diamonds is governed by the Diamonds Act, 56 of 1986 (“Diamonds Act”). Persons are not allowed to be in possession of rough diamonds unless they are producers or hold a licence or other authorisation from the appropriate authorities.

The Diamonds Act sets out certain procedures aimed at increasing local beneficiation and which producers are obliged to comply with. The producers are obliged to offer 10% of their production to the State Diamond Trader (“SDT”) at fair market value and on a run of mine basis (“representative sample”). The prices at which the production is offered to the SDT is to be verified by the Government Diamond Valuator failing which an independent diamond valuator may be appointed. Once the prices have been verified or agreed, the SDT is entitled to purchase the representative sample, failing which the producer may sell them independently.

In addition to the SDT process, diamonds that are intended for export must first be offered for sale at the Diamond Exchange and Export Centre at fair market value before they can be exported.



Summary of mining legislation

The mining industry in Tanzania is regulated at the national level, with the Ministry of Energy and Minerals supervising the sector. The Commissioner for Minerals within the Ministry, appointed by the President of Tanzania, is responsible for the supervision and regulation of the proper and effectual carrying out of the provisions of the Mining Act No 14 of 2010 (‘‘the Mining Act’’). There is also a Mining Advisory Committee constituted pursuant to the Mining Act, which has the responsibility of advising the Minister for Minerals on matters concerning the mining sector generally.

The principal legislation governing the mining sector is the Mining Act, with the following regulations issued pursuant to the act:

  • The Mining (Environmental Protection For Small Scale Mining) Regulations, 2010;
  • The Mining (Mineral Beneficiation) Regulations, 2010;
  • The Mining (Mineral Rights) Regulations, 2010;
  • The Mining (Mineral Trading) Regulations, 2010;
  • The Mining (Radioactive Minerals) Regulations, 2010; and
  • The Mining (Safety, Occupational Health and Environment Protection) Regulations, 2010.

The Environmental Management Act, 2004 is also relevant; along with the Income Tax Act 2004 (as amended from time to time), which sets out a special regime for the mining sector; the Tanzania Investment Act, which contains provisions that guarantee profit and capital repatriation as well as access to international arbitral process; and the Explosives Act, chapter 45 of the Laws of Tanzania.

The principal regulatory body for the mining sector is the Ministry. Both the Minister for Energy and Minerals and the Commissioner are the recognised licensing authorities acting individually or collectively under the Mining Act. There is an inspector of mines and other departments, which oversee the sector according to the requirements of the Mining Act.

In terms of the Mining Act, the entire property and control over minerals in or under the land is vested in Tanzania. No one may prospect for minerals or carry on mining operations except under the authority of a licence issued pursuant to the Mining Act. Geological data covering the entire country is available from the Ministry and all zonal mines offices to private parties who wish to invest in the mining sector.

Taxes and royalties

Corporate tax: 30%

Diamond royalty: 5% of turnover

Rough diamond export levy: n/a

Operations Map