In Tanzania, Petra’s partner is the Government of the United Republic of Tanzania at the Williamson mine, the country’s most important diamond producer.
During H1 FY 2022, the Group entered into a Framework Agreement with the Government of Tanzania regarding the Williamson mine which will reduce Petra’s indirect shareholding from 75% to 63%. Petra also entered into a non-binding Memorandum of Understanding (“MoU”) to sell 50% less one share of the entity that holds Petra’s shareholding in Williamson (“WDL”) to Caspian Limited. Upon completion of the transactions contemplated by the MoU and the capital restructuring in the Framework Agreement becoming effective (expected in H1 FY 2023), Petra and Caspian will each indirectly hold a 31.5% stake in WDL, but with Petra retaining a controlling interest in WDL, and the Government of Tanzania holding the remaining 37%. These agreements are in line with Petra’s objective of reducing its exposure in Tanzania while retaining control, through its controlling interest in the entity that holds Petra’s shares in WDL.
Williamson is Tanzania’s only important diamond producer. The mine is an open pit operation based upon the 146 hectare Mwadui kimberlite pipe, which is one of the world’s largest economic kimberlites.
Despite having been in operation since 1940, the pit is only 120 metres at its deepest point due to the large size of the deposit. The low grade of the deposit is countered by the high value of its diamonds and lends itself well to high volume, bulk mining methods.
Williamson is renowned for beautifully rounded white goods and ‘bubblegum’ pink diamonds, including the 23 carat Williamson Pink (54 carat rough stone), which is considered to be one of the finest pink diamonds ever recovered.
The Company’s expansion plan at Williamson has involved major pit reshaping and plant rehabilitation work in order to take the mine to a 5 Mtpa operation. In FY 2019 the Company achieved the highest level of production at the mine in over forty years, with 399,615 carats produced (FY 2020: 298,130 carats).
The Company’s current mine plan for Williamson has a life to 2031, but given that the Mwadui kimberlite hosts a major resource of 37.9 Mcts, there is potential to substantially extend the LOM.
In April 2020, the mine was placed on care and maintenance in order to preserve its liquidity. Operations restarted during Q1 FY 2022.
Contacts:
Human Resources Manager,
Williamson Diamonds Ltd,
P 0. Box 23,
Mwadui-Shinyanga.
