Petra Diamonds shares falls as Tanzania sector crackdown

Petra Diamonds shares fell by 7% after it said a parcel of its diamonds mined in Tanzania had been blocked from export by the country's government.

Several of its employees are being questioned by the country's authorities, although Petra says it has not formally been told the reasons why.

Petra has also suspended operations at one of its mines in Tanzania for "health and safety and security reasons". The country's government has passed new laws raising mining taxes and forcing companies to renegotiate contracts. Petra's operations in the country are 25%-owned by Tanzania's government.

The diamonds were on their way to Antwerp in Belgium, & Tanzania says the value of the shipment, from the Williamson mine, was $29.5m (£22.4m), and that Petra had under-declared its value. The government said at the weekend it planned to nationalise the diamonds.

UCJ, UNILORIN.