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ALROSA to double investment in Zimbabwe's diamond sector
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ALROSA, the world's largest diamond producer by output, has announced plans to double its initial investment in its joint venture with the Zimbabwe Consolidated Diamond Company (ZCDC), in a move that underscores growing confidence in Zimbabwe's mining sector. Mr. Pavel Marynichev, CEO of Alrosa Joint Stock Company, revealed the investment boost following a courtesy meeting with President Emmerson Mnangagwa at State House in Harare yesterday.
While Mr. Marynichev did not disclose the exact figures of the investment, he emphasized the company's readiness to expand its operations in Zimbabwe, citing investor-friendly policies introduced by the Second Republic under President Mnangagwa's leadership. He stated, "We are ready to work in the Republic of Zimbabwe and we are ready to move forward. The planned investments between our companies have been doubled, and by the end of 2025, the total investments will be doubled compared to the previous agreements."
Alrosa, a Russian-based company with nearly 70 years of history, first began geological exploration in Zimbabwe in 2013. However, after dropping its licenses in 2016, the company returned in 2019 following the implementation of significant political and economic reforms under the Second Republic. These reforms, Mr. Marynichev noted, created a more conducive environment for foreign investment, prompting Alrosa's renewed interest in Zimbabwe's diamond sector.
The company is currently conducting exploration operations under Special Grants and Exclusive Prospecting Orders. Alrosa has secured 40 such Special Grants and Orders since its return to Zimbabwe. Through these licenses, the company is focusing on identifying economically viable deposits of diamonds and other minerals.
Mr. Marynichev further highlighted the successful collaboration between Alrosa and ZCDC, which culminated in the establishment of a joint venture in 2019. "Two state-owned companies, Alrosa Public Joint Stock Company and Zimbabwe Consolidated Diamond Company, are working together through this joint venture in the Republic of Zimbabwe," he said, praising the operational environment in the country. "We are very glad to stay in the Republic of Zimbabwe and we have met with His Excellency the President to report on the results made by our company and our joint venture company during these years."
Alrosa, known for its comprehensive operations that span from geological exploration to the creation of polished diamonds and jewelry, employs 35,000 professionals globally and is responsible for 30% of global diamond production, with approximately 90% of Russia's diamond output. The company's expansion into Zimbabwe aligns with the country's growing role in the global diamond market.
Zimbabwe's mining sector has made significant strides in recent years, with production increasing from US$2.7 billion in 2017 to over US$12 billion currently. This growth has been driven by favorable investment regulations and the country's rich mineral resources, including gold, platinum, diamonds, and lithium. The mining sector is expected to play a key role in Zimbabwe's goal of achieving upper-middle-class economic status by 2030.
Despite having over 60 recorded minerals, Zimbabwe actively exploits only 10, with the rest requiring further exploration and resource definition. Alrosa's expanded involvement in Zimbabwe's diamond industry is set to bolster the country's mining sector and further attract international investors to its untapped mineral wealth.
While Mr. Marynichev did not disclose the exact figures of the investment, he emphasized the company's readiness to expand its operations in Zimbabwe, citing investor-friendly policies introduced by the Second Republic under President Mnangagwa's leadership. He stated, "We are ready to work in the Republic of Zimbabwe and we are ready to move forward. The planned investments between our companies have been doubled, and by the end of 2025, the total investments will be doubled compared to the previous agreements."
Alrosa, a Russian-based company with nearly 70 years of history, first began geological exploration in Zimbabwe in 2013. However, after dropping its licenses in 2016, the company returned in 2019 following the implementation of significant political and economic reforms under the Second Republic. These reforms, Mr. Marynichev noted, created a more conducive environment for foreign investment, prompting Alrosa's renewed interest in Zimbabwe's diamond sector.
The company is currently conducting exploration operations under Special Grants and Exclusive Prospecting Orders. Alrosa has secured 40 such Special Grants and Orders since its return to Zimbabwe. Through these licenses, the company is focusing on identifying economically viable deposits of diamonds and other minerals.
Mr. Marynichev further highlighted the successful collaboration between Alrosa and ZCDC, which culminated in the establishment of a joint venture in 2019. "Two state-owned companies, Alrosa Public Joint Stock Company and Zimbabwe Consolidated Diamond Company, are working together through this joint venture in the Republic of Zimbabwe," he said, praising the operational environment in the country. "We are very glad to stay in the Republic of Zimbabwe and we have met with His Excellency the President to report on the results made by our company and our joint venture company during these years."
Alrosa, known for its comprehensive operations that span from geological exploration to the creation of polished diamonds and jewelry, employs 35,000 professionals globally and is responsible for 30% of global diamond production, with approximately 90% of Russia's diamond output. The company's expansion into Zimbabwe aligns with the country's growing role in the global diamond market.
Zimbabwe's mining sector has made significant strides in recent years, with production increasing from US$2.7 billion in 2017 to over US$12 billion currently. This growth has been driven by favorable investment regulations and the country's rich mineral resources, including gold, platinum, diamonds, and lithium. The mining sector is expected to play a key role in Zimbabwe's goal of achieving upper-middle-class economic status by 2030.
Despite having over 60 recorded minerals, Zimbabwe actively exploits only 10, with the rest requiring further exploration and resource definition. Alrosa's expanded involvement in Zimbabwe's diamond industry is set to bolster the country's mining sector and further attract international investors to its untapped mineral wealth.
Source - the herald
