Africa-Press – Tanzania. PETRA Diamonds said on Tuesday the sale of its stake at Williamson mine in Mwadui, Shinyanga, is on course and expected to be concluded by June next year.
The South Africa-based diamond firm announced quarter one results and excluded figures from Williamson mine since it is currently classified “as an asset held for sale.” Petra holds a 75 per cent stake in Williamson while the remaining 25 per cent is under the government’s hands.
The firm said in a press release to announce its quarter one financial results ended in September, that Williamson was estimated to add between 0.22 and 0.27 million of carats (Mcts) for the year.
“The discussions with the government to reach agreement on various issues at the Williamson mine are ongoing, to conclude during the financial year 2022,” the statement said. Petra financial year starts in July. Apart from Williamson mine, Petra also owns Finsch, Cullinan and Koffiefontein mines in South Africa.
Petra announced the sale of the Williamson mine stake last June but has yet to name a buyer with the best interest offer which suits its stakeholders. Overall, Petra said on Tuesday that revenue rose by 48 per cent for the first quarter but that it was lowering its fiscal 2022 production guidance for one of its mines in South Africa.
The London-listed mining company said it now expects production at its Cullinan mine to be toward the bottom half of its earlier guidance of 1.7 million carats to 1.9 million carats if no mitigating steps are taken.
The company said production guidance of 3.1 million carats to 3.4 million carats for fiscal 2022 remain unchanged. This excludes the Williamson mine in Tanzania.
The revenue for the three months ended September was 114.9 million US dollars compared with $77.7m for the first quarter of fiscal year 2021.
The company said this was driven by the proceeds from the sale of exceptional stones during the period which totalled $50.2m. Williamson is an openpit diamond mine and was under the control of Petra, an Africa-focused producer of rough diamonds since 2008. At 146 hectares, it is one of the largest mines of its kind.
The mine is named after Dr John Williamson, a Canadian geologist who discovered it in 1940 as an economically exploitable primary diamond deposit. Dr Williamson managed the mine until he died in 1958.
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