UK-based mining company Petra Diamonds has sold its entire stake in Williamson Diamonds Limited (WDL) in Tanzania to Pink Diamonds – a subsidiary of Tanzanian mining services firm Taifa, which serviced the mine for over 25 years.
Under the $16 million deal, Pink Diamonds will pay Petra from WDL’s distributable cash, including 20% of the annual distributable cash generated by the mine until the full amount is settled. The transaction, subject to approval by lenders and the Tanzanian mining and fair competition commissions, is expected to close in Q1, 2025.
According to Richard Duffy, Chief Executive of Petra, the company “believes that Pink Diamonds will have the technical and financial capability to conduct operations in a responsible manner for all stakeholders.”
Rostam Azizi, Chairman of Pink Diamonds, said the firm will leverage its 30 years of experience in miningto enhance WDL’s contribution to the Tanzanian economy. He said that, “the mine has the largest kimberlite deposit in the world by surface area, with Reserves and Resources of 37.1 million carats as of 30 June 2024.”