London-listed Petra Diamonds Ltd shares climbed to 12.2 percent higher at 64.80 pence on Tuesday, after receiving authorization from the government of Tanzanian to resume diamond exports and sales from the Williamson mine.
On Sept.7, the government confiscated a consignment of diamonds from a mine majority-owned by Petra after accusing the firm of under-declaring the value of the stones by about half. Petra had denied the charge.
Petra said no resolution had been reached over the 71,654.45 carat shipment from the Williamson mine that was blocked for export this month.
The company said the timing and process for the next diamond export to the company’s office in Antwerp and the sale would be finalised between the company and the government.
Tanzania passed three laws in July that, among other things, hike taxes on mineral exports, mandate a higher government stake in some mining operations and force the construction of local smelters to add more value to the country’s mining industry.
The regulations aim to stamp out what President John Magufuli has called years of corrupt practices and tax evasion which he said has robbed the country of revenue from a sector accounting for about 4 percent of GDP.
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