GOVERNMENT yesterday signed a joint venture agreement with
the world’s top diamond producer by volumes, Alrosa Overseas SA, for the
exploration, extraction and marketing of diamonds, in a development expected to
transform the country’s diamond sector.
The move is an endorsement of President Mnangagwa’s robust
drive to attract investment in a bid to turn around the economy.
Zimbabwe Consolidated Diamond Company (ZCDC), a Government
diamond mining firm, signed the agreement with Alrosa in a development expected
to boost diamond production and thrust
the sector on the path to attaining 10 million carats by 2023.
Alrosa chief executive officer Mr Sergey Ivanov and ZCDC
chairman Mr Kilian Ukama signed the agreement in Harare yesterday at a ceremony
witnessed by President Mnangagwa.
Russian Ambassador to Zimbabwe Mr Sergey Bakharev and
several Cabinet ministers also attended.
The joint venture will be for the mining and exploration of
claims and special grants registered under ZCDC and others which may be
acquired by the joint venture company.
The latest deal comes after a Chinese firm, Anjin
Investments, was recently relicensed to extract gems in Chiadzwa as Government
seeks to exploit its minerals in line with the Transitional Stabilisation
Programme (TSP) and Diamond Policy.
Speaking after the signing ceremony, President Mnangagwa
described the agreement as yet another milestone in the “Zimbabwe is Open for
Business Policy”, which is critical in the new dispensation’s drive towards the
attainment of “Vision 2030” of an upper middle income economy.
“The signing of this joint venture agreement between the ZCDC
and Alrosa bears testimony of the successes that this policy is yielding, to
date,” said President Mnangagwa.
“This is demonstrated by Government’s commitment to welcome
and facilitate investments from across the world, which create mutual benefits,
jobs and ultimately results in the improved quality of life of our people.”
The historic event follows President Mnangagwa’s State
visit to Russia in January this year where he held talks with President Vladmir
Putin.
President Mnangagwa said the Moscow Stock Exchange-listed
company accounts for 29 percent of the global diamond production by volume,
adding that it is reputed for cutting edge technology for all processes along
the diamond value chain.
“After extensive negotiations, ZCDC and Alrosa have agreed
to a mutually beneficial partnership in diamond exploration, mining and
marketing; as well as both greenfield and brownfield exploration and mining
projects,” he said.
Under the agreement, Alrosa will release about US$12
million for diamond exploration in the country.
President Mnangagwa said the ensuing exploration efforts
are expected to culminate in the discovery of more diamond deposits for
development into operational mines that will significantly contribute to total
diamond production output and related value chain products in Zimbabwe.
“I am, thus, confident that the joint venture signed here
today (yesterday) will enhance skills and technological transfer as well as
create income and empowerment opportunities in the respective mining
communities and Zimbabwe as a whole,” he said.
President Mnangagwa reassured both Alrosa and ZCDC that
Government would guarantee the success of the joint venture partnership.
ZCDC’s Mr Ukuma said the signing of the agreement marks the
beginning of a partnership that will enable Zimbabwe to become one of the top
five rough diamond producers in the world in the next five years.
“Alrosa has a proven track record as a joint venture
partner in the region and globally. This will create more value for the
country, Government and other stakeholders resulting in the rapid development
and growth of the national economy in line with Government’s Vision 2030.
“This joint venture will yield significant benefits to the
communities and the nation through employment creation, generation of foreign
currency, contribution to te fiscus, enterprise development and upliftment of
communities,” said Mr Ukama.
He said attainment of 10 million carats and US$1 billion
from the diamond industry by 2030 remains their target.
Mr Ivanov said they were grateful to President Mnangagwa
for inviting them to participate in diamond exploration and mining in Zimbabwe,
adding that they will not only produce diamonds, but also also bring value.
“We are very grateful to your personal support and
involvement to make this joint venture a success,” he said.
Speaking during the post-Cabinet briefing yesterday,
Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa
said Cabinet considered and approved the Memorandum of Agreement between ZCDC
and Alrosa as submitted by Finance and Economic Development Minister Professor
Mthuli Ncube.
Alrosa has already advanced US$1,6 million for the
operationalisation of the joint venture and pledged to avail other funding
needs as equity for mining development and equipment acquisition.
She said benefits from the partnership will include access
to advanced exploration and mining technology and technical capacity under the
command of Alrosa.
Minister Mutsvangwa said the agreement would also see the
mitigation of constraints in the diamond sector such as limited market
development, diversity and depth; and unlocking the huge diamond sector
potential, which will ensure significant contribution to fiscus, foreign
currency generation, job creation and general economic development. Herald
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