Home Economy Zimbabwe signs $12 million investment deal for diamond exploration

Zimbabwe signs $12 million investment deal for diamond exploration

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Zimbabwe's President Emmerson Mnangagwa (L) shakes hands with Sergei Ivanov, CEO of Russian diamond producer Alrosa, during a meeting in Moscow, Russia REUTERS/Maxim Shemetov

A Russian diamond company, Alrosa, has inked a deal with the troubled country to explore and mine diamonds.

The deal comes as the country seeks ways to save its ailing economy, as this week their inflation reached 175%.

Alrosa CEO, Sergey Ivanov said: “We are hoping that exploration will start in September. We see a lot of potential and we will invest more in the coming years depending on the outcome of the exploration.”

Zimbabwe is rich with large diamond reserves. However, their mining industry has often been riddled with shady deals and overshadowed by the imminent political turmoil in the country.

The mines and mining development minister of Zimbabwe, Winston Chitado, said he’s hopeful that the investment will mark the beginning of greater things for his sector.

“This is a joint venture between Alrosa and the ZCDC. It will look at greenfield and brownfield projects. So there will be an exploration in new areas that are not known to have diamonds and there will also be work in areas such as Marange and Chimanimani which are known to have diamonds,” he explained.

“This is part of our vision to produce 10-million carats annually and to earn $1bn every year from diamonds.”

Earlier this year, Zimbabwean President Emmerson Mnangagwa, travelled to Russia to seek mining investments.

Russia committed to invest $3 billion for platinum production in Zimbabwe, in partnership with its government.

However, it is alleged that the Zimbabwean government is still holding back on the deal due to concerns over shareholding demands.

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