Petra Diamonds ink deal for Williamson diamond mine in Tanzania
Petra Diamonds (Petra) has entered an agreement to sell its entire 75% shareholding in Tanzania’s Williamson Diamonds Limited (WDL) to Pink Diamonds Investments, an affiliate of Taifa, for up to $16 million (£13 million). The Tanzanian Government owns the remaining 25% of WDL, which operates the Williamson open-pit diamond mine.
The $16 million consideration will be sourced from WDL’s distributable cash, with Petra entitled to 20% of any annual distributable cash until the full amount is paid. The deal includes transferring all shareholder loans owed to Petra.
Completion of the transaction is expected in Q1 2025, subject to regulatory and lender approvals. Petra plans to use any net proceeds from the sale for general corporate purposes. Petra CEO Richard Duffy emphasized that consolidated ownership under Pink Diamonds is in the best interest of WDL and its stakeholders. Pink Diamonds, affiliated with Taifa—a leading Tanzanian mining contractor—has the technical and financial capability to responsibly operate the mine. Petra’s decision aligns with its strategy to address WDL’s liquidity challenges and ensure continued capital investment in the Williamson mine.
Strategy
Petra acquired its majority stake in WDL in 2009. The company previously sold 50% of its stake in the mine to Taifa for $15 million in May 2023. WDL requires further capital to address short-term liquidity challenges and sustain operations.
Rostam Azizi, chairman of Pink Diamonds, highlighted Taifa’s 30 years of mining experience and its longstanding partnerships with industry leaders, including Petra, De Beers, Barrick, and AngloGold Ashanti. Taifa is Tanzania’s largest mining contractor and owns the country’s largest fleet of mining equipment. Azizi reaffirmed their commitment to adopting internationally recognized standards across all operations.
This transaction marks a pivotal step for Petra as it focuses on streamlining operations and enhancing stakeholder value. The sale aligns with its strategy of ensuring the Williamson mine’s sustainability through consolidated ownership and strategic investments under Tanzanian leadership.
