Alrosa Plans to Mine Diamonds in South Africa

Alrosa is planning to mine diamonds in what is considered De Beers' main turf – South Africa. According to reports in the Russian press, Alrosa announced late last week it has reached an agreement with the South African government that clears the way for the Russian miner to start working in partnership with the “local population”.

Beneficiation has become one of the major influences on African mining in the past year.

The reports out of Moscow say Alrosa’s president Alexander Nichiporuk met with representatives of South Africa’s Department of Mineral Resources and Energy and reached an agreement

Alrosa “is ready to consider projects in the Republic of South Africa”, the company said following the meeting, adding: “We are ready to act as managers in the projects that would also involve local residents.”

The Russian press was also quick to say that De Beers has been actively trying to block Alrosa’s entrance to South Africa, with some newspapers suggesting that the government might be ready to confront De Beers as well as supply Alrosa with geological data and assistance with licenses.

Alrosa did not say what mining projects it had in mind, if it will start with exploration or try to buy an existing mine such as the Alexkor mine that is currently owned by the South African government.

But until work of any kind can start, the agreement has to be approved by the Russian authorities. In the meantime, the sides will continue talks within the framework of a Russian-South African commercial and economic cooperation committee.

De Beers is already exploring for diamonds in Russia’s west, while Alrosa has a mine in Angola.