By:Miningmx

PETRA Diamonds has exited Tanzania’s Willliamson (WDL) mine saying on Wednesday an agreement to sell its remaining 31.5% stake had been concluded.

“We would like to thank the Government of Tanzania for their partnership and support since Petra acquired its interest in WDL in 2009 and to the Tanzanian Fair Competition Commission for providing their approval of the transaction,” said Vivek Gadodia, joint interim CEO.

“Petra concluded it was preferable for WDL to come under consolidated ownership, and we wish all the best to Pink Diamonds as they take over the mine.”

The sale valued at up to $16m, includes all shareholder loans owed to Petra by the entity holding its WDL interest.

Payment will be structured through WDL’s distributable cash, with Petra receiving 20% of annually generated distributable cash until the full consideration is paid. The diamond miner said the proceeds would be put towards general corporate purposes.

Williamson is one of the world’s largest resources of diamonds but it had been problematic for Petra to manage over the years. In 2022, Petra suspended production at Williamson following a break in a tailings dam. Then in 2020, it faced allegations of violence perpetrated by local security forces on illegal miners which required a £4.3m settlement. A few months earlier Williamson was shut owing to poor market conditions.