AMN - ZIMBABWE: Alrosa to start mining diamonds

Russian mining giant Alrosa and Zimbabwe Consolidated Diamond Company (ZCDC) have signed a joint venture agreement to develop diamond deposits in Zimbabwe.

According to the terms of the agreement, signed by Alrosa deputy CEO Vladimir Marchenko and ZCDC non-executive chairman Killian Ukama, Alrosa gets a 70% controlling stake for the development of greenfield projects, and the ZCDC – 30%.

The agreement also stipulates that the joint venture “will be able to work not only with the licences ZCDC has today, but also in the territory of the whole country”.

In case a new prospective area is discovered, the company will contact directly the Zimbabwe Ministry of Mines and Mining Development requesting a new licence for this area.

Marchenko said: “Creation of a joint venture is a major step in the cooperation with our partners in Zimbabwe. We are committed to productive work in the exploration of new promising areas and subsequent diamond mining.

"Our specialists have been working in Zimbabwe for more than three months now, and the national authorities have been of great support to them.

"We have chosen various projects for the joint venture, and part of them is to be launched this autumn. Of the existing fields for development, we are preliminary considering the areas located in the Chimanimani region."

First of all, the joint venture will be engaged in geological exploration of greenfield deposits. Further objectives include cooperation, diamond mining and independent sale of rough diamonds in external markets.

Alrosa is the leader of the world diamond mining industry, a Russian partially state-owned diamond mining company

In December 2018, Alrosa established an affiliated company in Zimbabwe, Alrosa (Zimbabwe) Limited, for the implementation of projects in mineral prospecting, exploration and mining operations with a view to creating joint diamond-mining and other mining enterprises.

Alrosa operates in strict compliance with corporate standards and industry commitments as part of membership in RJC, WDC and DPA. All these standards will be unconditionally implemented in the work of Alrosa in Zimbabwe.

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