Alrosa Pulls Out of Botswana Exploration Project

RAPAPORT... Alrosa has sold its 50% stake in the Sunland Mineralsexploration project in Botswana, according to its former joint-venture partner. Botswana Diamonds bought the Russian miner out for a"nominal sum" and now owns the asset outright, it said in a statement Thursday.Another large diamond producer with "new ideas" that is "keen to find newkimberlites" in the African country is close to acquiring the stake that Alrosaowned, Botswana Diamonds added. If that new partner finalizes the deal, workcould begin on identified targets in the first half of 2019. Alrosa underwent changes to its senior management in 2016and 2017 that resulted in a shift away from these types of projects, BotswanaDiamonds explained. "For reasons unconnected with this [exploration site], newAlrosa management prioritized marketing over early-stage exploration," saidBotswana Diamonds chairman John Teeling. Alrosa subsequently stoppedcontributing funds, and will help its former partner find a replacement,according to the statement. "The project in Botswana was [a] pilot for Alrosa, both interms of the fact that this is a new country for us, and in terms of themanagement model," an Alrosa spokesperson said. "After four years, we evaluatedthe results and decided to leave the project and concentrate on more familiarand priority activities. We thank Botswana Diamonds for their cooperation andwish the company success in the further implementation of this project."Image: A rough diamond.