The Sunday Mail
Mathew Nyaungwa
Rough & Polished, an industry online magazine, reported mid-last year that Russian diamond giant Alrosa was planning to set up ventures in Botswana and Zimbabwe.
It also reported at the time that Alrosa was looking for a partner in Zimbabwe to set up a joint venture for the geological exploration of diamond-rich areas in Marange.
Shortly after these reports, Alrosa established its joint venture (JV) company with Botswana Diamonds called Sunland Minerals, which is operating an exploration programme on PL117 in Orapa.
The JV was currently carrying out a detailed ground geophysics programme in the area of anomaly AN117-1 to target drill sites.
Alrosa and Botswana Diamonds geologists were also carrying out a widespread geophysics and ground sampling programme on licences PL206-PL210.
Botswana Diamonds announced early October that Sunland had already discovered kimberlite-type material in two of the holes drilled.
The company said that two holes were drilled on each of two anomalies AN117/1 and AN117/2.
“The discovery of kimberlite- type material in holes 3 and 4 is very encouraging,” said Botswana Diamonds chairperson John Teeling.
“This is the first time that Alrosa exploration technology has been applied in Botswana and these results support its use. We will now refine the model.”
The exploration programme was ongoing.
With Alrosa now actively involved in Botswana’s Orapa, it was also interesting to hear that the diamond giant was set to prospect for precious stones in the country with DTZ-OZGEO, a Zimbabwe-Russia joint venture company.
Apart from Marange, diamonds are also mined in Chimanimani by DTZ-OZGEO and in central Zimbabwe by Rio Tinto, while River Ranch’s operations in Beitbridge were reportedly mothballed.
Reuters quoted Russia’s trade and industry minister Denis Manturov as saying last September that Alrosa and DTZ-OZGEO would prospect for diamonds throughout the country.
There is no doubt that Alrosa’s technology would help Zimbabwe find more diamond deposits at a time output in Marange was nose-diving.
The International Trade Centre, a joint agency of the World Trade Organisation and the United Nations, said Zimbabwe’s industrial diamond exports tumbled to US$188 million in 2013 from about US$658 million in the previous year.
The report attributed the decline to weakening demand from the United Arab Emirates, China and Belgium as miners in Marange scaled down operations due to depleting alluvials on their concessions.
However, with Alrosa stepping into the country, there is hope of finding fresh deposits.
Teeling said the Russians’ technology and computer programmes can refine data that is available from geophysics and geochem.
He said Alrosa’s sophisticated exploration technology had previously helped it discover 17 hard-rock diamond mines in Siberia.
“These guys (Alrosa) will find things below 100 metres and it is completely a new territory. This opens up a vista of multiple new mines and these guys have proven that they can do it,” he said.
Alrosa, according to a report released last February by Dowgate Capital Stockbrokers, has developed various techniques and adapted existing methods to locate diamond bearing rock up to 200m beneath the thick Siberian tundra overburden.
It is currently the world’s largest diamond production company by volume and in 2012 it accounted for around 25 percent of global diamond production in terms of value.
Reports in some sections of the Zimbabwean media that sought to rubbish September deals between Harare and Moscow are mischievous or borders on dangerous ignorance.
A simple Google search can reveal the activities Alrosa is involved in in Angola and Botswana.
I mentioned already what the Russians are doing in Botswana and it is also noble to briefly look at what the diamond giant has done or currently doing in Angola.
Alrosa has shares in Sociedade Mineira de Catoca diamond mine together with the state-run mining company Endiama, Odebrecht of Brazi, as well as a venture between China and state oil producer Sonangol.
Catoca produces more than half of Angola’s diamonds.
Angola produced 9,36 million carats in 2013 valued at US$1,28 billion, behind Botswana, Russia and Canada, according to the Kimberley Process.
Catoca said earlier in the year that it would develop new mines in Angola.
It had already completed a feasibility study at Tchuizo, which was the largest of the projects earmarked for development.
Alrosa and Endiama also signed an agreement last February establishing an exploration JV in the country.
According to its provisions, the first stage comprised the acquisition of the prospective Cassango area for three years of exploration work with the total financing estimated at $15,5 million.
The agreement envisages granting the JV with diamond mining rights in case of discovery of a cost-effective kimberlite deposit.
If this happens, Alrosa could invest not less than US$150 million into building mining facilities.
Production would be equally divided between the parties.
The agreement also provided for the return of investment when the JV reaches its target capacity: 75 percent of its profit will cover the return of investment and 25 percent to be paid as dividends to the stakeholders.
To the so-called political analysts, a deal involving the Russians is not ‘‘clean’’, yet some countries as stated above are opening their arms to Alrosa and results are there to be seen even by the blind.
That said, there is no doubt that Zimbabwe, which hasn’t done any significant diamond exploration, will immensely benefit from Alrosa’s activities in the country.
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Mathew Nyaungwa is an MA candidate in Journalism and Media Studies at Rhodes University in South Africa. He can be reached at [email protected]
