During the Russia-Africa Economic Forum, which is currently underway in Sochi, representatives of the diamond industry and the leaders of invited governments discussed the road map for the mining sector, as well as the challenges facing the diamond industry.
Following the discussion, the participants formulated a list of basic principles, observance of which will promote sustainable development of the global diamond industry.
The list includes: sharing the best practices in the development of human resources and health and safety issues; gradual reduction of environmental footprint of diamond mining; supporting community in the regions of presence; strengthening the regulatory mechanisms of international diamond trade; ensuring complete and clear product disclosure and differentiation with lab-grown diamonds; building of responsible supply chains; promoting generic marketing for polished diamonds.
The forum also focused on the development of new ties between African countries and Russia.
Thus, Vladimir Putin said during a meeting with Namibian President Hage Gottfried Geingob that ALROSA, the world's largest mining company, intends to make Namibia a business offer, investing.com said.
“Our largest producer of rough diamonds, ALROSA, is ready to host the Namibian delegation in Moscow to discuss issues of mutual interest,” the head of the Russian Federation was quoted as saying.
The forum also discussed cooperation between Russia and Zimbabwe, in particular the investment in exploration.
The head of ALROSA, Sergey Ivanov, emphasized that there is no disagreement between ALROSA and Zimbabwe, and if potential commercial deposits are discovered, the parties "will always agree on the potential revenues."
In the summer, an agreement was signed between the government of this African country and ALROSA on the creation of a joint venture that will conduct exploration and mining activities in Zimbabwe.
Russia has advanced technologies and experience in the areas of geological exploration and development of diamond deposits, so such transcontinental alliances between Russia and Africa will be able to bring many advantages to the diamond producing countries.
However, despite ALROSA’s intent to expand its business in Africa, the company said that in 2020 it could reduce its production by 10-15% due to an overabundance of diamond reserves. Sergey Ivanov was quoted as saying by TASS on the sidelines of the economic forum.
In his message, he noted that for shareholders the difference would not be dramatic.
The company also increased its production guidance for 2019 to 38.5 million carats from 38 million carats, while it lowered its sales forecast to 32-33 million. Previously, the company intended to sell about 38 million carats.