Petra Completes Sale of Williamson Mine
May 20, 25
(IDEX Online) - Petra Diamonds has completed its sale of the Williamson mine, in Tanzania, as it seeks to address liquidity challenges.
The UK-based miner sold just under half its interest in the mine to Pink Diamonds Investments Limited, an affiliate of Taifa, long-term technical services contractor at the mine, for $15m in May 2023.
It has now concluded a sale of the remainder of its interest to the same company, for up to $16m. Any net proceeds will be used for Petra's general corporate purposes.
In a statement Petra said: "Further to the announcement made on 22 January 2025, Petra announces that it has completed the sale of its entire shareholding in the entity that holds Petra's interest in Williamson Diamonds Limited, together with all the shareholder loans such entity owes Petra, to Pink Diamonds Investments Limited for a headline consideration of up to U$16 million."
In January the company announced plans to sell its remaining shares in Williamson, citing a prevailing weak market, and the need for further capital investment in the mine.
Richard Duffy, then Petra's CEO, said it had become "increasingly clear to both Petra and Pink Diamonds that it would be preferable for WDL (Williamson Diamonds Ltd) to come under consolidated ownership".
The mine has faced repeated operational difficulties, including a tailings dam breach in late 2022, which caused significant environmental damage and led to a temporary suspension of operations, and allegations of violence by security forces against illegal miners in 2020, which resulted in a £4.3m settlement.
Pic courtesy Petra of Williamson mine.