Petra Acquires Tanzanian Mine from De Beers

By JCK Online Staff -- JCK Online, 9/9/2008 2:21:00 PM

De Beers has entered into a contract to sell its entire 75 percent equity shareholding and all of its claims over Williamson Diamonds Ltd. to Petra Diamonds Ltd. through the sale of 100 percent of Willcroft Company Ltd.

In terms of the sale agreement the cash consideration is $10 million, and the transaction will also transfer rehabilitation liability.

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 Ltd. WDL operates the open-pit Williamson Mine at Mwadui (pictured) in the Shinyanga Region of northern Tanzania.

This is one of several diamond mines that Petra has acquired from De Beers Consolidated Mines, a South African subsidiary of De Beers, in recent years—the Cullinan, Koffiefontein and on completion, Kimberley Underground mines. This will be the firm's mine in Tanzania.

The proposed transaction gives Petra the opportunity to unlock the 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.

“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," said Gareth Penny, managing director of the De Beers Group. "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.”