OWN CORRESPONDENT, London | Wednesday 1.00pm.
THE world’s leading diamond miner De Beers announced it is selling its only direct holding in a Russian mine to Alrosa, Russia’s leading diamond miner.
A spokeswoman for De Beers said the company had hoped there would be a relaxation in Russia’s legislation to the benefit of foreign investors, but that “nothing has really changed” in the two years since De Beers acquired the stake.
The mining giant has signed a protocol of intent to sell its 27% stake in Severalmaz, holder of the exploration licence for the Lomonosov deposit in Arkhangelsk, northwestern Russia.
“As the major diamond mining company in Russia, Alrosa was best placed to take forward the possible development of the Lomonosov deposit and thereby to make an important contribution to the development of the Russian diamond industry and to the northern regions of the Russian Federation,” a statement said on Wednesday. No financial details have been given.
De Beers has carried out a technical evaluation of the Lomonosov deposit and expects production there to begin around 2005. The company will continue to buy diamonds from Alrosa until the end of next year and will maintain its Moscow office.
Following the sale, Alrosa will hold a 39% stake in Severalmaz. The other main shareholders are the regional administration which holds around 25% and the private Russian company Soglasiwe which holds 27%. — AFP