PETRA Diamond Limited (PDL) on Wednesday announced the completion of the sale of its entire interest in Williamson Diamonds Limited (WDL) to Pink Diamonds Investments Limited, a subsidiary of Tanzanian mining services firm Taifa for up to 16 million US dollar (about 43.17bn/-), marking its full exit from operations in Tanzania.
According to the statement released by PDL, the Londonlisted miner said the transaction includes all shareholder loans owed by WDL and was finalized following approval from Tanzania’s Fair Competition Commission (FCC).
It said the consideration for the transaction shall be payable by Pink Diamonds out of WDL’s future distributable cash, with Petra entitled to receive 20 per cent of such cash annually until the full amount is settled. It said the proceeds will be used for general corporate purposes.
Petra said it acquired its interest in the mine in 2009 and has now concluded that it is preferable for WDL to come under consolidated ownership. “We would like to thank the government of Tanzania for their partnership and support,” Joint Interim Chief Executive Officer (CEO) Vivek Gadodia said.
He added: “We wish all the best to Pink Diamonds as they take over the mine.” The Williamson mine, located in Shinyanga in northern Tanzania, is one of the world’s oldest continuously operating diamond mines.
Known for producing rare pink diamonds, the mine was suspended for much of 2023 following a tailings dam breach in late 2022 that prompted investigations and a temporary halt in operations.
On his part, the Pink Diamonds chairperson Rostam Azizi said early in January this year that his company is committed to adopting and adhering to the latest internationally recognised standards throughout all aspects of our business.
Pink Diamonds, a subsidiary of Tanzanian mining services firm Taifa, purchased the entire stake in Petra Diamonds.
The discovery of the kimberlite pipe by Canadian geologist John Williamson in 1940 led to ongoing operation since then, making it one of the world’s oldest continuous operating diamond mines.
Its yield of 19-million-plus diamond carats includes the 54.5 per cent Williamson pink diamond presented to British royalty in 1947.
