Several Russian companies involved in diamond mining in Zimbabwe have recently been sold for 90 million US dollars.
These companies have licenses to mine in Bulawayo.
The deal was made in a rush, leading to a lower price paid by the unidentified buyer.
It is unclear whether the change in ownership will affect the operation of the mines.
Zimbabwe and Russia have been developing cooperation on both the governmental and private investment levels.
Diamond mining is a crucial sector of Zimbabwe’s economy, with the country being the world’s seventh-largest producer of diamonds in 2022.
According to GlobalData, Zimbabwe was the world’s seventh-largest producer of diamonds in 2022, with output down by 19.2% in 2021. Over the five years to 2021, production from Zimbabwe increased by a CAGR of 14% and is expected to rise by 3% between 2022 and 2026.
Overall, the mineral-rich southern African country sees the mining sector as the main driver for economic growth.
Despite some Russian companies leaving the market, others, such as ALROSA, have discovered new diamond deposits in Zimbabwe.
A year ago, Russia’s Vi Holding pulled out from Zimbabwean platinum company Great Dyke Investments, marking a new challenge for Zimbabwe’s biggest platinum project.
The Darwendale mining project includes the development of underground mining activities to extract PGM, as well as processing facilities.
By Abdelsalem Hitach