RAPAPORT… Zimbabwe Plans to Amend Minerals Act
Zimbabwe is in the process of amending its Mines and Minerals Act in order to align it with the country’s indigenization policy. According to NewsDay Online, Mines and Mining Development Minister Obert Mpofu explained that in addition to encouraging economic empowerment and indigenization, the policy would promote investment and the development of new mines. The new policy would lead to intensive exploration and the establishment of state exploration cooperation. Mpofu added that a policy to regulate the country’s diamond industry was in progress.
In other news from Zimbabwe, the Herald reported that the Braitwood Institute of Gemology will open two additional diamond cutting and polishing schools in Bulawayo and Mutare in September. The goal of the three-year program is to “train entrepreneurs who would go on to establish other centers and employ other people,” according to Braitwood’s chief executive officer (CEO), Bernard Mutanga. Braitwood works with Zimbabwe’s Minerals Marketing Corporation that is sanctioned by the U.S. and the European Union (EU).
—Additional reporting by Acquire Media.
ALROSA’s Profits Soar
ALROSA reported a 45 percent increase in revenue for 2010 to $4 billion (RUB 113.39 billion). Net profit rose to $414 million (RUB 11.8 billion) from $122 million in 2009.
ALROSA sold 39.5 million carats of rough, which was up 51 percent year on year from 2009. Rough diamond production rose 5 percent to 34.3 million carats, making ALROSA the top diamond producer for a second consecutive year.
The mining giant also lowered its debt to $3.4 billion (RUB 97.8 billion) at the end of 2010 from almost $4 billion in 2009. Interfax quoted an unnamed company source that said debt reduction efforts “placed a question mark” over the need to launch an initial public offering (IPO) to raise an estimated $3 billion.
These results were filed under International Financial Reporting Standards (IFRS), which typically follow financial reporting based upon Russian Accounting Standards (RAS).
Namibia, De Beers Sign Partnership Agreement
De Beers and Namibia reached an agreement in which the country will increase its shareholding in De Beers Marine Namibia (DBMN) from 15 percent to 50 percent. Under this agreement, the shareholders will establish a new 50/50 joint-venture holding company for Namdeb and DBMN. The new firm will hold all operating licenses for both land and sea and will own the diamonds mined from those areas. Currently, all operations are controlled by Namdeb.
All the diamonds produced by Namdeb and DBMN will continue to be sorted, valued and marketed exclusively by the Namibia Diamond Trading Company (NDTC), which is also a joint venture between Namibia and De Beers.
Namibia’s Minister of Mines and Energy, Isak Katali, commented on the agreement, ‘’Our agreement, and the partnership between the government and De Beers, has created a solution that will benefit the people of Namibia now and in the long-term.”
Implementation is expected during the second half of 2011.
De Beers Canada Publishes Annual Report to Society
De Beers Canada released its 2010 sustainable development report highlighting the company’s annual commitment to local economics, ethics, employees, communities and the environment.
The report noted that De Beers Canada employed 1,087 people and injected approximately $474 million into Canada’s economy. The group mined 1.75 million carats, with 926,000 carats coming out of its Snap Lake mine and 826,000 carats derived from the Victor mine. De Beers Canada made corporate social investments of $5.9 million with a focus on education and literacy for the communities adjacent to the mines.
“Sustainable development and corporate social responsibility are at the core of our business approach,” said Tom Ormsby, director of external and corporate affairs for De Beers Canada.
