By Business Reporter – Thursday 30 January 2020
HARARE (Mining Index) – NATIONAL diamond miner, Zimbabwe Consolidated Diamond Company (ZCDC) is expected to sign several joint venture (JV) agreements during the course of 2020 with various investors.
This was mentioned by ZCDC’s media and consultancy company, MEJRKH during a meeting with Mining Index last week. They however could not be dawn to reveal the number of JVs and names of companies that will partner the state-owned diamond firm.
ZCDC Public Relations Manager Sugar Chagonda and Acting CEO Roberto De Pretto did not respond to questions sent to them last week.
Further research done by Mining Index reveal that two of the companies anticipated to partner ZCDC are Phumela and Article Field, both from neighbouring South Africa.
Although the terms of the partnerships are still not known, pointers are that the forthcoming JVs will cover diamond exploration, mining, processing, valuation, marketing, beneficiation, value addition, capacity building, security and law enforcement.
The signing of these upcoming agreements follow previous joint ventures signed between ZCDC and Russian giant Alrosa (MCX: ALRS) (world’s top diamond producer by output) in December 2019 which gave the Russian miner 70 percent controlling stake for the development of greenfield projects while ZCDC retained a paltry 30 percent stake.
ZCDC is yet to conclude another partnership agreement with Katanga which is expected to enable the Chiadzwa Community Diamond Concession to procure a special grant for the mining of diamonds within the Concession. and establish final interests of Vast Resources, the Community, and ZCDC in Chiadzwa Community Company (CCC).
Of the 16 diamond sites in Zimbabwe, ZCDC wholly owns Marange, Chihota, Chiadzwa, Chimanimani, and River Ranch Pipes.
The Zimbabwe National Diamond Policy of December 2018 stipulates that “any other entity or person with diamond mining title shall approach any one of the four approved companies for Joint Venture arrangements.”
The Diamond Policy also stipulated that private players shall participate in value addition after cleaning and sorting upon obtaining the necessary approvals. ENDS// www.miningindex.co.zw
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