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De Beers calls it quits at Mwadui Diamonds
2008-09-10 10:02:53
By Guardian Reporter
Williamson Diamonds Limited`s all-time majority shareholder, De Beers, yesterday concluded a deal that saw its entire 75 per cent stakes changing ownership to Petra Diamonds Limited (Petra).
The transaction earned De Beers, which has operated its interests at WDL through Willcroft Company Limited in a joint venture with the government of Tanzania over the past 50 years, an instant USD10 million (about 11.7bn/-).
The deal is expected to be completed mid next month, according to a just-released statement.
WDL operates the open-pit Williamson Mine at Mwadui in northwestern Tanzania`s Shinyanga Region.
Petra is said to have proven diamond mining expertise and to have acquired a number of other mines in recent years from De Beers Consolidated Mines, a South African subsidiary of De Beers.
Mining industry watchers see the transaction boding well for the future of Williamson Mine largely because it gives Petra the opportunity to use its expertise to unlock the significant value at the Mwadui diamond deposits.
Mwadui is still considered the world`s largest kimberlite mine currently in production in a 146-hectare area.
Commenting on the sale, Energy and Minerals minister William Ngeleja said: ?The government 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.``
Meanwhile, Petra CEO Johan Dippenaar noted: ``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. We thank Tanzania for their support in completing this transaction and look forward to working with the government as our partner in taking the mine forward,``added a visibly elated Dippenaar.
De Beers Group managing director Gareth Penny explained that the sale of the shareholding in WDL was part of the company`s ongoing drive to position itself for long-term growth by reviewing the portfolio of mining assets and focusing on those with the best strategic potential.
Petra Diamonds was established in 1888 and operates in South Africa as well as Angola, Botswana and Sierra Leone.
Canadian geologist John Williamson discovered the Mwadui kimberlite in 1940 and began mining activities in the area soon after.
De Beers purchased half the total shareholding in WDL upon his 1958 death, with the then colonial government of Tanganyika taking the other half in lieu of death duties.
De Beers managed Mwadui Mine between 1958 and 1973, when the government of Tanzania took over the management of day-to-day operations.
De Beers was invited back in 1994 to oversee the mine?s management operations and, following recapitalisation, the shareholding was adjusted to 75 per cent De Beers and 25 per cent Tanzanian government.
The mine, which has a workforce of about 800 people and also uses the services of 400 independent contractors, last year earned USD23 million from 220,209 carats.
SOURCE: Guardian
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2008-09-10 10:02:53
By Guardian Reporter
Williamson Diamonds Limited`s all-time majority shareholder, De Beers, yesterday concluded a deal that saw its entire 75 per cent stakes changing ownership to Petra Diamonds Limited (Petra).
The transaction earned De Beers, which has operated its interests at WDL through Willcroft Company Limited in a joint venture with the government of Tanzania over the past 50 years, an instant USD10 million (about 11.7bn/-).
The deal is expected to be completed mid next month, according to a just-released statement.
WDL operates the open-pit Williamson Mine at Mwadui in northwestern Tanzania`s Shinyanga Region.
Petra is said to have proven diamond mining expertise and to have acquired a number of other mines in recent years from De Beers Consolidated Mines, a South African subsidiary of De Beers.
Mining industry watchers see the transaction boding well for the future of Williamson Mine largely because it gives Petra the opportunity to use its expertise to unlock the significant value at the Mwadui diamond deposits.
Mwadui is still considered the world`s largest kimberlite mine currently in production in a 146-hectare area.
Commenting on the sale, Energy and Minerals minister William Ngeleja said: ?The government 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.``
Meanwhile, Petra CEO Johan Dippenaar noted: ``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. We thank Tanzania for their support in completing this transaction and look forward to working with the government as our partner in taking the mine forward,``added a visibly elated Dippenaar.
De Beers Group managing director Gareth Penny explained that the sale of the shareholding in WDL was part of the company`s ongoing drive to position itself for long-term growth by reviewing the portfolio of mining assets and focusing on those with the best strategic potential.
Petra Diamonds was established in 1888 and operates in South Africa as well as Angola, Botswana and Sierra Leone.
Canadian geologist John Williamson discovered the Mwadui kimberlite in 1940 and began mining activities in the area soon after.
De Beers purchased half the total shareholding in WDL upon his 1958 death, with the then colonial government of Tanganyika taking the other half in lieu of death duties.
De Beers managed Mwadui Mine between 1958 and 1973, when the government of Tanzania took over the management of day-to-day operations.
De Beers was invited back in 1994 to oversee the mine?s management operations and, following recapitalisation, the shareholding was adjusted to 75 per cent De Beers and 25 per cent Tanzanian government.
The mine, which has a workforce of about 800 people and also uses the services of 400 independent contractors, last year earned USD23 million from 220,209 carats.
SOURCE: Guardian
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