EXTENSIVE resource definition and quantification works being undertaken by Russian firm, Alrosa, at the Malipati Diamond Project in Matabeleland South, has revealed a rare and high value species of diamonds that have potential to change the face of Zimbabwe’s gem industry.
The successful
exploitation of the resource could be a game changer in terms of accelerating
development and job creation for Matabeleland South and Masvingo provinces, in
particular. It could also go a long way in revitalising provincial economies in
line with Government’s devolution thrust.
Alrosa, the
Russian diamond behemoth, is the world’s largest gem miner with an annual
turnover of more than 35 million carats, is exploring for diamonds in
Matabeleland South having signed a diamond investment deal that gave birth to
Alrosa Zimbabwe.
They are
partnering State-owned diamond miner, the Zimbabwe Consolidated Diamond Company
(ZCDC). Alrosa has already moved on the ground for exploration works, which
includes Aero-magnetic surveys and it is from these works that the miner has
seen potential for Type II diamonds.
The Type II
diamonds have no Nitrogen impurities within their build and often fetch much
higher prices and are between one and two percent of the world’s total diamond
resource base.
Speaking after
a tour of the project by Mines and Mining Development Minister Winston Chitando
on Monday, ZCDC board chairman Mr Wellington Pasipamire said although there is
still a lot of work to be done in terms of resource definition, there is
evidence for a compelling resource.
The tour was
also attended by Alrosa Global deputy chief executive Mr Vladimir Marchenko.
“There is a
very interesting discovery of what they call the Type II diamond, which is a
rare occurrence, which is free of nitrogen and exhibits high value in the
market,” said Mr Pasipamire.
“Ordinarily you
get your Type I diamonds, which have nitrogen and carry less value. So, as a
kimberlite pipe we are confident that probably we will extract something out of
this project,” said Mr Pasipamire.
He, however,
noted that there is no case for easily accessible alluvial diamonds and the
said mineralisation is of rather “capital intense deep-seated kimberlitic
deposits”.
This has still
not deterred project development as Alrosa has the requisite financial
wherewithal to finance commercial exploitation. So far, the investor has been
given access to seven special grants (SGs) but there are discussions to further
increase these to 40 SGs.
This has in
turn excited parties to the joint venture against the background of the 10
million carats target under the mining sector’s US$12 billion milestone.
“If you look at
the capabilities of Alrosa and them being the biggest diamond player, they have
sufficient capacity to deploy the capital expenditure that is required for
projects of this nature.
“Generally, you
don’t venture into a complexly risky project of this nature without having done
the necessary risk assessment and capital deployment parameters.
“As ZCDC in
partnership with Alrosa, we are very optimistic that it is very possible to
achieve the 10 million carats (annual target). Remember we are not just looking
at this project alone with the Alrosa team, we are forecasting on 40 special
grants in the totality of the Alrosa project.
“So, when you
look at the actual valuation of each of those special grants, I think it is
very humble for us to estimate 10 million carats (annually), it’s just a
conservative estimate but we are headed for victory in terms of that
threshold.”
Minister
Chitando said such projects are a culmination of investment attracting
strategies by President Mnangagwa such as the relaxation of the previously
stringent indigenous regulations.
“The ‘Zimbabwe
is open for business’ mantra came up with amendments to the indigenisation
regulations which previously was 51 (percent for locals) and 49 (percent for
foreigners) and it really did not work in terms of attracting foreign direct
investment,” said Minister Chitando.
“So that was amended
and it enabled us to have a huge inflow into the country and the US$12 billion
we are talking about is on the basis of huge foreign investment,” he said. Chronicle
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