The world’s top diamond producer by output, Alrosa (MCX:ALRS), and the Zimbabwe Consolidated Diamond Company signed a joint venture agreement to develop diamond deposits in Zimbabwe.
Under the terms of the agreement between the state-owned companies, Alrosa will get a 70% controlling stake for the development of greenfield projects, while ZCDC will get the remaning 30%.
Starting in the fall of 2019, the JV will focus on geological exploration of greenfield deposits. Once there are some results from the germinal activities, the miners will consider cooperating in diamond mining and independent sale of rough diamonds in external markets.
In a media statement, Alrosa and ZCDC said the joint venture will be able to work not only with the licenses ZCDC has today, particularly those in the Chimanimani region, but also in the entire 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 license for this area,” the press release reads.
In December 2018, Alrosa established an affiliated company in the African country, 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.