South Africa-focused miner Petra Diamonds has agreed to sell its 75% stake in Tanzania’s Williamson Diamonds Limited (WDL) to Pink Diamonds Investments for up to $16 million (£13 million). The remaining 25% of WDL is owned by the Government of Tanzania.
WDL operates the Williamson open-pit diamond mine, with Petra acquiring its majority stake in 2009. The buyer, Pink Diamonds Investments, is affiliated with Taifa, a fully Tanzanian-owned company and the long-term technical services contractor at the Williamson Mine.
The transaction includes transferring all shareholder loans owed to Petra. The $16 million consideration will be paid from WDL’s distributable cash, with 20% of any annual distributable cash allocated to Petra until the full amount is settled. However, Petra cautions there is no guarantee the full payment will be received.
Petra Diamonds CEO Richard Duffy highlighted the strategic rationale for the sale, stating:
“Since we entered into the previous transaction with Pink Diamonds, it has become increasingly clear to both Petra and Pink Diamonds that consolidated ownership of WDL would be preferable.
We believe Pink Diamonds, as an affiliate of Taifa, has the technical and financial capability to manage operations responsibly for all stakeholders.”
The transaction is expected to be completed in the first quarter of 2025, subject to regulatory and lender approvals. Petra plans to use any net proceeds for general corporate purposes.
Petra previously sold 50% of its stake in WDL for $15 million in May 2023. However, the Williamson Mine faces liquidity challenges and requires further capital investment to sustain operations.
Petra concluded that transferring ownership to Pink Diamonds supports the mine’s long-term stability and the interests of all stakeholders.
Pink Diamonds chairman Rostam Azizi emphasized Taifa’s local expertise, stating:
“Taifa is a fully Tanzanian-owned company and the country’s largest mining contractor, with over 30 years of mining-related experience.
We have successfully partnered with global companies such as Petra, De Beers, Barrick, and AngloGold Ashanti. With the largest fleet of mining equipment in Tanzania, we remain committed to adhering to the highest international standards in all aspects of our business.”
The agreement underscores a collaborative approach between Petra, Taifa, and Tanzanian authorities to ensure the Williamson Mine continues to operate sustainably while contributing to the local economy.
