By Nneka Nwogwugwu
Tanzania has announced ownership of 37% of Williamson Diamonds Ltd, the single, largest diamond deposit to be in continuous production for over 70 consecutive years now.
Discovered in 1940, the mine boasts to be the world’s longest-running uninterrupted diamond mining operation. The open-pit mine is sprawled on over 140 hectares of land in Tanzania’s remote region of Mwadui.
Known scientifically as the kimberlite pipe, the mine is primarily owned by Petra Diamonds Ltd. Tanzania struck the deal early this month increasing its ownership by 12 per cent and cutting down Petra’s stake to 63 per cent from a high of 75 per cent.
This recent share split is the latest of moves signed by Tanzania with three other mining giants Faru Graphite Corporation, Nyati Mineral Sands Ltd and Sotta Mining Corporation Ltd.
According to a government media communiqué released by Prof Palamagamba Kabudi, who led the negations for the Tanzanian side, the East African country will now enjoy 16 per cent free-carried interest from each of the three companies.
As for the Petra owned Williamson Diamond mine, the deal is slightly different with Tanzania agreeing on an issue of shares from the London-listed mega diamond trader bringing the government’s interest up by 12 per cent.
Actually, the deal with Petra also has another element in that it holds an economic benefit pact divided into a ratio of 55 per cent for the government and 45 per cent for Petra.
After many deliberations, Tanzania is happy with the deal, the issued share with Petra, the joint ventures with the other three companies all mean more returns for Tanzanians.