The Government of the United Republic of Tanzania, De Beers Société Anonyme (De Beers) and Petra Diamonds Limited (Petra) today announced that De Beers has entered into a contract to sell its entire 75% equity shareholding and all of its claims over Williamson Diamonds Limited (WDL) to Petra through the sale of 100% of Willcroft Company Limited.
Since 1958 WDL has operated as an incorporated joint venture between the Government of Tanzania and De Beers. De Beers’ shareholding in WDL is held through its wholly-owned subsidiary, Willcroft Company Limited. WDL operates the open-pit Williamson Mine at Mwadui in the Shinyanga Region of northern Tanzania.
Petra is a committed long term player in the diamond industry and has shown itself to be a responsible miner and a good corporate citizen. Petra has proven diamond mining expertise and, in recent years, has acquired a number of other mines from De Beers Consolidated Mines, a South African subsidiary of De Beers.
The proposed transaction bodes well for the future of Williamson diamond mine as it gives Petra the opportunity to use its expertise to unlock the significant value at the Mwadui deposit (the world's largest kimberlite mine currently in production at 146 hectares) and to invest for the continued sustainable development of mining operations at the Williamson diamond mine and the communities the mine supports.
Commenting on the sale, the Honourable Minister of Energy and Minerals, William Ngeleja, said: “The Government of the United Republic of Tanzania is pleased to welcome Petra to Tanzania as its new partner in Williamson Diamonds Limited. This is an exciting opportunity to breathe new life into Williamson Mine and Tanzania’s diamond mining sector.”
Johan Dippenaar, Chief Executive Officer of Petra, said: “Petra already owns three of the world’s major diamond mines, Cullinan, Koffiefontein and on completion, Kimberley Underground. Williamson will add a fourth world class mine to our portfolio, with the potential to deliver considerable value to our shareholders.
“This acquisition also marks Petra’s entry into Tanzania, further diversifying the Group’s geographical spread across Africa. We thank the Government of the United Republic of Tanzania for their support in completing this transaction and we look forward to working with the Government as our partner in taking the mine forward.”
Gareth Penny, Managing Director of the De Beers Group explained: “The sale of our shareholding in Williamson Diamonds is part of our ongoing drive to position De Beers for long term growth by reviewing our portfolio of mining assets and focusing on those with the best strategic fit. As we build the De Beers of the future we are also creating new opportunities for other players in an increasingly diversified and competitive global diamond industry.”
In terms of the sale agreement the cash consideration is US$10 million, and the transaction will also transfer rehabilitation liability.