On March 3, 2005 ALROSA President Alexandr Nichiporuk received a delegation of the Department of Minerals and Energy of South Africa headed by Director General Sandile Nogxinaat the company’s Moscow office.

ALROSA aims at expanding its operations in Africa, and, in addition to its Angolan activities, is looking into projects in South Africa. The Russian side is interested in accessing to geological information and developing practical forms of business co-operation. ALROSA is ready to bring in its exploration and mining experience and technologies. The company’s access to international financial resources enables it to raise funds for joint projects. ‘We are ready to manage projects where local representatives would be involved,’ said A. Nichiporuk.

ALROSA practices a comprehensive approach to development of diamond deposits. The company invests in social infrastructure, builds power supply networks and roads. Its pro-active social policy is oriented towards meeting local needs and interests, and environmental requirements.

S. Nogxinawelcomed ALROSA’s intention to go in for diamond mining in South Africa. He said recent changes in the South African mineral and mining legislation opened up new opportunities for co-operation. New mineral resource regulation allows more companies to have access to mineral resources, promotes the development of domestic cutting industry, and encourages BEE. Various forms of partnership facilitate access to mineral deposits. ‘We are ready to provide geological information to you, the Department of Minerals and Energy will assist you in acquiring licenses and understanding legal procedures’, said S. Nogxina.

The parties agreed to continue consultations. The forms of ALROSA’s participation in the diamond industry of South Africa are expected to be specified at the next meeting in the framework of the ITEC (Intergovernmental Committee on Trade and Economic Co-operation between South Africa and Russia).

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ALROSA has been involved with the ITEC since October 2002. Within the Committee, the delegations initialed a draft Co-operation Agreement between the governments of the Russian Federation and South Africa to develop the diamond complexes of both countries. Then the Russian side reviewed the text of the Agreement to be signed and ratified in the South African Parliament, as under the current legislation all the international agreements of South Africa related to diamond production and processing are subject to parliamentary ratification. On November 17-19, the forth meeting of the Committee took place in Pretoria. First Vice-President of ALROSA A. Nichiporuk is part of the Russian side of the Committee.