Petra Diamonds exits Tanzania's Williamson mine with sale to Pink Diamonds

Petra Diamonds agreed in January 2025 to sell its remaining stake in Williamson Diamonds, operator of the Williamson mine at Mwadui in northern Tanzania, to Pink Diamonds Investments. Pink Diamonds is linked to Tanzanian businessman Rostam Aziz and already owned part of the mine. The sale left Williamson wholly under Tanzanian private and state ownership.

Terms

The consideration of up to $16m includes all shareholder loans owed to Petra by the entity that held its Williamson interest. There is no upfront cash. Petra will instead receive 20% of the mine's distributable cash each year until the full amount has been paid. Petra said the proceeds would go to general corporate purposes.

Completion

After Tanzania's Fair Competition Commission approved the deal, Petra said on 14 May 2025 that it had completed the disposal of its remaining 31.5% effective interest. Joint interim chief executive Vivek Gadodia said Petra had concluded it was better for the mine to come under consolidated ownership.

A troubled asset

Williamson, one of the world's largest diamond resources and famous for pink stones, was a persistent problem for Petra. The mine was shut in 2017 during a dispute with the government of John Magufuli, closed again in 2020 when the market was weak, and suspended in 2022 after a tailings dam failed. Petra also paid a £4.3m settlement over allegations of abuses by security personnel against illegal miners.

The exit lets London-listed Petra concentrate on its South African mines, Cullinan and Finsch, at a time when the rough-diamond market is under severe pressure and the company is working to cut debt.

Sources

• Mining Technology: Petra divests entire stake in Tanzania's Williamson Diamonds to Pink Diamonds, 23 Jan 2025
• Miningmx: Petra Diamonds concludes exit from Williamson mine, 15 May 2025
• Africa Business Plus: Tanzanian tycoon Rostam Aziz acquires Williamson diamonds, 31 Jan 2025

Photo: Panoramic view of the Williamson diamond mine at Mwadui, Tanzania. Hansueli Krapf, Wikimedia Commons, CC BY-SA 3.0.