Petra Diamonds has finalized an agreement to sell its entire 75% stake in Tanzania’s Williamson Diamonds Limited (WDL) to Pink Diamonds Investments, a company affiliated with Taifa, for up to $16 million. The remaining 25% of WDL is owned by the Tanzanian government. This deal includes the transfer of shareholder loans owed to Petra, with the $16 million consideration being paid from WDL’s distributable cash. Petra will receive 20% of WDL’s annual distributable cash until the full amount is paid. However, the company noted that the full payment is not guaranteed.
Richard Duffy, Petra Diamonds’ CEO, emphasized the strategic decision to place WDL under consolidated ownership. “We believe that Pink Diamonds, affiliated with Taifa, has the technical and financial capacity to manage operations responsibly for all stakeholders,” Duffy said. He added that Petra aims to work with regulatory bodies, employees, and community representatives to complete the transaction by the first quarter of 2025, pending necessary approvals.
Pink Diamonds is closely linked to Taifa, Tanzania’s largest mining contractor, which has over 30 years of experience in the sector. Taifa’s chairman, Rostam Azizi, highlighted the company’s robust mining capabilities and commitment to adhering to international standards. Taifa has longstanding partnerships with major mining firms, including De Beers, Barrick, and AngloGold Ashanti, and owns the largest fleet of mining equipment in Tanzania.
The sale marks a continuation of Petra’s divestment strategy, following its partial sale of the Williamson mine stake in 2023 for $15 million. Petra identified consolidated ownership of WDL as beneficial for both the company and the mine’s stakeholders, especially considering WDL’s current liquidity challenges and need for further capital investment to sustain operations.