ALROSA and ZCDC Launch Major Diamond Exploration in Zimbabwe: A New Era for the Nation’s Gem Sector

ALROSA (Zimbabwe) Limited (ALROSA Zim), a strategic joint venture forged between the global diamond mining giant ALROSA and the Zimbabwe Consolidated Diamond Company (ZCDC), has officially commenced its ambitious prospecting and preliminary exploration works for primary diamond deposits across key regions of Zimbabwe. This landmark initiative signals a significant step forward for Zimbabwe’s mineral economy and reinforces its potential as a major player in the global diamond industry.

Laying the Groundwork: Regulatory Compliance and Strategic Provinces

The journey to this crucial phase has been meticulously planned and executed, ensuring full adherence to national regulations and environmental standards. ALROSA Zim successfully secured the necessary Special Grants from Zimbabwe’s Ministry of Mines and Mining Development, a pivotal step that grants legal access and authorization for exploration activities. Furthermore, the Environmental Impact Assessment (EIA) for the project received official approval from the Environmental Management Agency (EMA). This rigorous approval process underscores the venture’s commitment to responsible mining practices and minimizing its ecological footprint within the operational areas.

With these essential regulatory clearances in place, ALROSA Zim is poised to initiate its comprehensive exploration program across three strategically important provinces: Masvingo, Matebeleland South, and Matebeleland North. These regions have been identified based on their geological prospectivity, offering promising indicators for the presence of primary diamond deposits, specifically kimberlites, which are the primary source rocks for diamonds.

Systematic Exploration: A Multi-Phase Approach

The exploration strategy adopted by ALROSA Zim is systematic and multi-phased, designed to progressively narrow down potential diamond-bearing areas. The initial phase of operations began in July 2020, with ALROSA Zim’s team of experienced geologists deploying a range of cutting-edge techniques:

• Geochemical Sampling: This involves collecting soil and stream sediment samples to identify indicator minerals associated with kimberlites, such as garnets, ilmenite, and chromite. Anomalies in the distribution of these minerals can point to the presence of underlying diamondiferous kimberlite pipes.
• Trenching: Shallow excavations are performed to expose bedrock and geological structures, allowing for direct observation and sampling of near-surface geology, particularly in areas where indicator minerals have been detected.
• Pitting: Similar to trenching but involving smaller, more focused excavations, pitting helps in defining the extent and characteristics of surficial deposits and weathered bedrock.

These initial ground-based investigations are primarily focused on the promising Malipati zone within the designated provinces. Following these preliminary assessments, a more advanced stage of ground geophysical surveys is scheduled. These surveys utilize various techniques, such as magnetic, electromagnetic, and gravity methods, to detect subsurface geological features, including kimberlite pipes, which often have distinct geophysical signatures compared to the surrounding host rocks.

Towards the end of the year, the exploration efforts will expand to include the Maitengwe area, where similar ground prospecting operations will be conducted. Significantly, this phase will also incorporate airborne geophysical surveys. These surveys, often conducted using specialized aircraft, can cover vast areas quickly and efficiently, providing high-resolution data on subsurface geology and identifying potential kimberlite targets over broad regions, thereby enhancing the overall effectiveness of the exploration program.

Looking ahead, the exploration program is set to intensify in 2021 with the commencement of bulk sampling and drilling operations. Bulk sampling involves excavating larger quantities of kimberlite material to process and recover macro-diamonds, providing crucial information on diamond grade and quality. Drilling, on the other hand, allows for the collection of core samples from deeper geological structures, confirming the presence of kimberlite at depth and providing detailed geological and petrographic information necessary for resource evaluation.

A Commitment to Responsibility and Sustainable Development

Vladimir Marchenko, ALROSA Deputy CEO, emphasized the strategic importance and responsible approach of the joint venture: “Following the signing of a joint venture agreement with ZCDC to develop diamond deposits in Zimbabwe in December 2019, we are progressing well towards the initiation of the full-scale prospecting works this year. ALROSA, as a proud member of the Responsible Jewellery Council, World Diamond Council, and Natural Diamond Council, fully adheres to all industry commitments on responsible business practices and upholds its own stringent corporate standards. ALROSA is unwavering in its commitment to strictly follow these principles while operating in the Republic of Zimbabwe, striving to minimize any adverse environmental impact across all areas of activities and ensuring the comprehensive and rational utilization of mineral resources.”

This statement underscores ALROSA’s global reputation for ethical sourcing and sustainable operations. Its affiliations with leading industry bodies like the Responsible Jewellery Council (RJC) mean adhering to a robust set of standards covering business ethics, human rights, social performance, and environmental performance throughout the diamond supply chain. The World Diamond Council (WDC) focuses on preventing the trade of conflict diamonds through the Kimberley Process Certification Scheme, while the Natural Diamond Council (NDC) promotes the integrity and desirability of natural diamonds. ALROSA’s commitment to these principles in Zimbabwe ensures that any future diamond discoveries will contribute positively to the local economy and communities, in line with international best practices for responsible mineral extraction.

Significant Investment and Shareholder Structure

ALROSA’s financial commitment to the Zimbabwean diamond sector is substantial, with investments for the 2020-2022 period projected to reach an impressive $12 million. This significant capital injection reflects ALROSA’s confidence in Zimbabwe’s diamond potential and its long-term vision for the joint venture. Such foreign direct investment is critical for the growth and modernization of Zimbabwe’s mining sector, bringing in not only capital but also advanced technological expertise and best-practice operational standards.

The shareholder agreement establishing ALROSA (Zimbabwe) Limited delineates a clear ownership structure: ALROSA holds a commanding 70% stake in the joint venture, while the Zimbabwean state-owned diamond mining company, ZCDC, retains a 30% share. This partnership structure combines ALROSA’s vast international experience in diamond exploration, mining, and marketing with ZCDC’s deep understanding of the local geological context and regulatory landscape. The primary focus of this joint venture is to conduct thorough prospecting and exploration activities, with the ultimate goal, in the event of successful discoveries, of moving into the full-scale mining of primary diamond deposits within the Republic of Zimbabwe.

Outlook for Zimbabwe’s Diamond Future

The commencement of these exploration activities marks a pivotal moment for Zimbabwe’s diamond industry. The nation possesses considerable geological potential for diamonds, yet this potential has largely been underexplored for primary deposits using modern, systematic methods. The partnership with ALROSA, a company renowned for its technical prowess and ethical standards, provides a unique opportunity to unlock this potential responsibly.

Successful exploration and eventual mining could bring substantial benefits to Zimbabwe. These include significant foreign currency earnings from diamond exports, the creation of numerous direct and indirect employment opportunities for local communities in the exploration and future mining areas, and the development of ancillary industries. Moreover, the transfer of skills and technology from ALROSA to Zimbabwean personnel will enhance the country’s overall capacity in the sophisticated field of diamond exploration and mining. This venture is set to not only boost Zimbabwe’s economic growth but also elevate its standing on the global diamond stage, positioning it as a transparent and responsible source of natural diamonds for years to come.