What Alrosa's entry into Zimbabwe meansAugust 13, 19
The NewZimbabwe.com news website took a bit closer look at the deal made between Russian diamond exploration and mining giant Alrosa and the state-owned Zimbabwe Consolidated Diamond Company (ZCDC). Alrosa will have 70 percent stake in its joint venture with in Manicaland with a provision set for possible expansion "in the territory of the whole country."
Information Minister Monica Mutsvangwa confirmed that "although efforts will be made to ensure a much favorable parity between Alrosa and ZCDC," the structure will be in favor of the Russian firm. "The shareholding will however be renegotiated at agreed intervals of the project cycle up to a split of 49-51 percent in favor of Alrosa. ZCDC will subscribe to 30 percent shareholding in Alrosa Zimbabwe, so that is how the joint venture company will undertake this project, as you are aware Alrosa is number one in terms of exploration, mining and even marketing and beneficiation of diamonds," said Mutsvangwa. "That certainly will take us into the global league of diamond production, there are quite a lot of advantages," she added.
NewZimbabwe.com wrote that President Emmerson Mnangagwa's government, with the inception of his regime, had amended the country's controversial black empowerment law which gave locals a mandatory 51 percent plus stake in all foreign firms operating in Zimbabwe. Only diamond and platinum exploration, mining and marketing retained the mandatory 51 percent local ownership which government seems to have ignored.
Already Alrosa has injected US$1.6 million into the joint venture while US$12 million has already been earmarked for exploration in the diamond rich region and across the country.