Tanzanian contract mining company Taifa Mining and Civils Limited, owned by billionaire Rostam Azizi, has taken a significant step forward in its expansion plans.
The firm has signed a definitive agreement to purchase 50-percent less one share of Petra Diamonds’ shareholding in Williamson Diamonds Limited (WDL). The deal, valued at $15 million, solidifies Taifa Mining’s growing influence in Tanzania’s mining sector.
The transaction builds upon a previous Memorandum of Understanding signed between Taifa Mining and Williamson Diamonds Limited two years ago.
According to the terms of the latest deal, Taifa Mining will acquire a significant stake in WDL and assume a prorated portion of shareholder loans owed by WDL.
Richard Duffy, CEO of Petra Diamonds, expressed his optimism about the partnership, stating that the new structure would reduce Petra’s equity interest in WDL, aligning with their objectives while retaining control and a share of the upside.
He emphasized Williamson’s unique position in the sector, highlighting its large resource base and ability to produce high-quality pink diamonds.
Duffy also acknowledged Taifa Mining’s extensive local and mining experience, which will be instrumental in optimizing the orebody for mutual benefit.
With more than 30 years of mining-related experience, Taifa Mining is Tanzania’s largest mining contractor, boasting successful relationships with prominent companies such as Petra, De Beers, Barrick, and AngloGold Ashanti.
Azizi, chairman of Taifa Mining, lauded the deal as a significant milestone for the company.
Azizi also highlighted the company’s commitment to adhering to international standards in all business operations.
The latest acquisition represents Azizi’s latest efforts to diversify his business interests in East Africa.
Earlier this year, he secured a license from the Kenyan government to establish a cooking gas plant and storage facilities at the Mombasa port through his LPG supply company, Taifa Gas.
As the Tanzanian billionaire expands his presence in Kenya’s market, he is set to face fierce competition from oil giants Vivo, Rubis, and Total, who are vying for control of the significant market share of households relying on cooking gas.
With Azizi’s extensive experience and resources, this market battle is expected to intensify, providing consumers with more options and potentially driving down prices.
Through these strategic moves, Azizi is solidifying his reputation as a prominent figure in the East African business landscape, leveraging his entrepreneurial expertise and capital to create mutually beneficial partnerships and ventures that have the potential to reshape industries.