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Pride Mahlangu, Business Reporter

THE Zimbabwe Consolidated Diamond Company (ZCDC) and Russia’s diamond producer, Alrosa have signed agreements to finalise the creation of a joint venture (JV) to prospect and explore the mineral’s deposits locally.

Last July, ZCDC and the world’s top diamond producer by volume, Alrosa signed a memorandum of agreement to transform it into a JV for prospecting, exploration and mining of primary diamond deposits in the country.

The move is an endorsement of President Mnangagwa’s drive to attract investment into Zimbabwe in a bid to reignite the economy after years of stagnation.

Alrosa has announced that a shareholder agreement and a JV establishment pact were signed by its chief executive officer Mr Sergey Ivanov and ZCDC non-executive board chairman Engineer Killian Ukama.

“According to the agreements, Alrosa owns 70 percent of Alrosa (Zimbabwe) Limited JV, Zimbabwean state-owned diamond mining company (ZCDC) gets 30 percent,” said Alrosa in a statement.

The global diamond producer established an affiliate company Alrosa (Zimbabwe) Limited in December 2018. 

Mr Ivanov was quoted as saying: 

“We are focused toward productive prospecting and exploration for primary diamond deposits in the Republic of Zimbabwe. 

“Signing current agreements allows us to form the company’s administration and to initiate procedures required to get necessary permissions and licences.

“Getting authorisation and first prospecting special grants, JV will be ready to operate.”

He added:

“Being a member of Responsible Jewellery Council, World Diamond Council and Diamond Producers Association, Alrosa complies in full with industry commitments on responsible business practices and its corporate standards. 

“Alrosa is committed to follow these principles strictly while working in the Republic of Zimbabwe.”

The signed JV agreements are expected to see an increase in diamond output and thrust the sector on the path to attaining the 10 million carats by 2023.

The agreement is also expected to mitigate constraints in the diamond sector such as limited market development, diversity and depth; and unlock a huge diamond sector potential, ensuring a significant contribution to the fiscus, foreign currency generation, job creation and general economic development. — @pridesinstinctz.