Petra concluded that consolidating WDL ownership benefits both Petra and WDL’s stakeholders, supporting its strategic goals. Credit: Nmaneer/Shutterstock.

South Africa-active Petra Diamonds (Petra) has entered into an agreement to divest its entire shareholding in Tanzania’s Williamson Diamonds Limited (WDL) to Pink Diamonds Investments for up to $16m (£13m).

WDL operates the Williamson open-pit diamond mine in Tanzania and is 25% owned by the Government of Tanzania and 75% by Petra, which acquired its majority stake in 2009.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Pink Diamonds Investments is an affiliate of Taifa, a wholly Tanzanian-owned company.

The transaction will include the transfer of all shareholder loans owed to Petra.

The $16m consideration will be paid from WDL’s distributable cash, with 20% of any annual distributable cash going to Petra until fully paid.

However, there is no certainty that the full amount will be received. Petra plans to use any net proceeds for general corporate purposes.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Petra CEO Richard Duffy said: “Since we entered into the previous transaction with Pink Diamonds, it has become increasingly clear to both Petra and Pink Diamonds that it would be preferable for WDL to come under consolidated ownership.

“We believe that Pink Diamonds, who are affiliated to Taifa, the long-term technical services contractor at the Williamson Mine, will have the technical and financial capability to conduct operations in a responsible manner for all stakeholders.

Duffy added: “We look forward to working closely with the Mining Commission, the Fair Competition Commission, employees, community representatives and other key stakeholders in completing the sale as soon as possible.”

The company expects completion of the transaction in the first quarter of 2025, subject to regulatory and lender approvals.

Petra Diamonds sold half of its stake in the Williamson mine for $15m in May 2023.

WDL faces short-term liquidity challenges and will need further capital investment to continue operations at the Williamson mine.

Petra has concluded that consolidated ownership of WDL is in its best interest as well as those of WDL’s stakeholders, and the transaction supports this strategy.

Pink Diamonds chairman Rostam Azizi said: “Taifa is a wholly Tanzanian-owned company. It is also Tanzania’s largest mining contractor with over 30 years mining related experience. We have been the contractor of choice to most mines in Tanzania and have maintained long and successful relationships with companies such as Petra, De Beers, Barrick and AngloGold Ashanti.

“In addition, we also own the largest fleet of mining equipment in Tanzania. As a company, we are committed to adopting and adhering to the latest internationally recognised standards throughout all aspects of our business.”