Petra Buys Stake in Williamson Diamond Mine

Petra Diamonds on Tuesday said it had agreed to buy Cheviot Holdings’ entire stake in the Willcroft Company Ltd. 

Willcroft owns 75 percent of Williamson Diamonds Ltd, which is the sole owner and operator of the Williamson mine. The Tanzanian government owns the remaining 25 percent of the mine.

Petra is buying the Cheviot stake in Tanzania’s Williamson diamond mine for $10 million. The acquisition is expected to be completed by mid October 2008.

“Williamson will add a further major mine to our portfolio, with the potential to deliver considerable value to our shareholders,” Johan Dippenaar, Petra’s chief executive said, noting that the purchase also marks Petra’s entry into Tanzania, and further diversifies its geographical spread across Africa.

Petra already owns three major diamond mines, Cullinan, Koffiefontein and on completion, Kimberley Underground.

The Williamson mine covers a span of 146 hectares and has been operated continuously as an open pit mine for almost 70 years. During this time it has produced over 20 million carats and it is estimated to have an additional capacity of some 40 million carats.

The mine has produced large, high quality stones and is also a source for fancy pink diamonds.

Cheviot is a wholly owned subsidiary of De Beers Societe Anonyme (De Beers).