Russian diamond miner Alrosa says one of the motivations behind signing the $12-million joint venture (JV) agreement with national diamond miner Zimbabwe Consolidated Diamond Company (ZCDC) is to develop cooperation between Alrosa and its Zimbabwean partners and increase Alrosa’s presence in African countries.
“Alrosa has started looking for exploration projects to create new diamond mining enterprises in the Republic of Zimbabwe. A JV is a major step in terms of cooperation with our Zimbabwe partners. We are committed to productive work in the exploration of new, promising areas and subsequent diamond development,” says Alrosa deputy CEO Vladimir Marchenko.
AdvertisementHe signed the JV agreement with ZCDC chairperson Killian Ukama, providing Alrosa with a 70% controlling stake in mining for the development of greenfield projects.
Marchenko tells Mining Weekly that Alrosa will invest more in the years to come, depending on the outcome of the exploration projects.
AdvertisementThe company already has operations in Angola, signified by a JV agreement signed in 2015 with State-owned diamond group Endiama for exploration. Alrosa also has a 41% stake in Catoca, which is Angola’s largest diamond mine.
In addition to exploration opportunities, several mutually beneficial prospects await Alrosa and the Zimbabwe diamond mining industry.
“With the help of Alrosa, the development of new deposits will re-establish Zimbabwe’s position in the global market, introduce best international business management and governance practices, create operational transparency and result in revenue and expenditure controls, as well as contribute to the improvement of the social and economic situation in Zimbabwe and the wellbeing of people and communities in the mining regions.”
Marchenko adds that this will also enable Alrosa to channel its investments in the diamond sector correctly, subsequently ensuring the sustainable socioeconomic development of the industry.
With exploration expected to begin in September, Alrosa intends to focus on greenfield prospecting and exploration, with subsequent mine development and independent sales of diamond production in external markets. Alrosa does plan to start full-scale mining in Zimbabwe, which is the next step after exploration. It plans to market and sell diamonds on the global market as Zimbabwe diamonds, in accordance with its practice of selling rough diamonds ‘by ownership’.
Meanwhile, Marchenko states that Zimbabwe’s great potential lies in large diamond reserves, with deposits producing 3.5-million carats per year.