Despite the fact that Zimbabwe and Russia are developing co-operation at the state level, as well as at the level of private investment in the most profitable areas of Zimbabwean production, some Russian companies are leaving the market and selling their assets in Zimbabwe. For instance, several companies worth $90 million were recently sold. These diamond mining companies have mining licences in Bulawayo.
According to various sources, the deal was done in a hurry, the reasons for which are yet to be disclosed. The need to finalise the deal in a short period of time led to a reduction in the price paid by the buyer, who has not yet been identified. The question arises as to whether the change of ownership of the company will lead to changes in the operations of the mines.
Diamond mining in Zimbabwe is one of the most important sectors of the country’s economy. According to GlobalData, Zimbabwe will be the world’s seventh largest diamond producer in 2022, with production declining by 19.2% from 2021. In the five years to 2021, Zimbabwe’s output increased by a CAGR of 14% year-on-year and is expected to grow by a CAGR of 3% year-on-year between 2022 and 2026. In general, the mineral-rich southern African country sees the mining sector as a key driver of economic growth.
The Russian holding Vi retired from Zimbabwean platinum company Great Dyke Investments a year ago, which signalled a new challenge for Zimbabwe’s largest platinum project. The Darwendale mining project incorporates the development of underground mine workings for PGM extraction, and processing facilities.
That same year, however, Russian diamond miner ALROSA discovered 22 new diamond deposits in Zimbabwe.
