Top diamond producer increases investment. . .Alrosa ramps up Zimbabwe stake

ALROSA, the world’s largest diamond producer by volume, will be doubling its initial investment in its joint venture with the Zimbabwe Consolidated Diamond Company (ZCDC), Alrosa Joint Stock Company chief executive officer, Mr Pavel Marynichev, has announced.

A delegation from the Russia-based company paid a courtesy call on President Mnangagwa at State House in Harare yesterday. In an interview after their closed-door meeting, Mr Marynichev revealed Alrosa’s plans to double their initial investment, spurred by the investor-friendly policies introduced by the Second Republic.

“We are ready to work in the Republic of Zimbabwe and we are ready to move forward. Yes, and having said that, we have to admit that the planned investments between our companies were doubled. And so by the end of 2025, the total investments will be doubled compared to the previous agreements,” he said.

Alrosa began conducting geological exploration in Zimbabwe in 2013 but relinquished the licences it held in 2016.

The company returned under the Second Republic in 2019, thanks to President Mnangagwa’s political and economic reforms. Mr Marynichev stated that they were conducting exploration operations under Special Grants and Exclusive Prospecting Orders.

“Historically, we have got 40 Special Grants and Exclusive Prospective Orders since the establishment of our company, and we are conducting our exploration activities within these licences, trying to find economically viable deposits of diamonds and other minerals. As you might know, we established the joint venture between Alrosa and the State entity Zimbabwe Consolidated Diamond Company (ZCDC).

So, we established the joint venture in 2019 . . . two state companies, Alrosa Public Joint Stock Company and Zimbabwe Consolidated Diamond Company, they work together through this joint venture in the Republic of Zimbabwe,” he said.

Mr Marynichev expressed great satisfaction with the operating environment in Zimbabwe.

Alrosa Joint Stock Company

“And we’ve already thanked His Excellency (President Mnangagwa) for the brilliant investment climate here. We are very glad to stay in the Republic of Zimbabwe and, of course, today we have met with His Excellency the President and we reported about the results made by our company, our joint venture company during these years,” he said.

According to the company, Alrosa has nearly 70 years of history and, as the world leader in diamond mining and explored reserves, it is the only company globally that covers every aspect of diamond production from geological exploration to the creation of polished diamonds and jewellery.

The Alrosa Group employs 35 000 professionals, responsible for 30 percent of global and about 90 percent of Russian diamond production.

Zimbabwe has, in recent years, made significant strides in the mining sector, ramping up production from a base of US$2,7 billion in 2017 to over US$12 billion currently, due to favourable investment regulations and an array of much-sought-after minerals including gold, platinum, diamonds, and lithium, among others. Mining sector revenues are expected to play a critical role towards the country’s attainment of upper-middle-class economic status by 2030.

Zimbabwe has over 60 recorded minerals, but only 10 are being actively exploited as the rest require exploration and resource definition. chroncile