MOSCOW, September 6 (RIA Novosti) - Alrosa and De Beers have signed a memorandum of understanding on possible joint geological surveying, Russia's state-owned rough diamond producer said Wednesday.
The document, signed on the sidelines of Russian President Vladimir Putin's visit to South Africa, enables the world's two biggest diamond producers to conduct geological surveys in Russia, Africa and other parts of the world.
"The agreement continues the 50-year history of business contacts between the two companies, which have substantially contributed to economic relations between Russia and South Africa and encouraged the development of the diamond sectors in the countries," Alrosa said in a news release.
Alrosa and De Beers said they took into consideration a decision by the European Commission in February approving an agreement between the companies to gradually end De Beers' purchases of Alrosa's rough diamonds by 2009. The commission said the decision would help provide fair competition on the international diamond market.
"Both companies are committed to social responsibility and environmental safety, and to providing support for remote and developing parts of the world whose prosperity may depend on the diamond sector," the news release said.
Following the European Commission's decision, Alrosa, which holds 23% of the world diamond market, and De Beers signed a memorandum on May 9 on supplying rough diamonds in 2006-08, envisaging gradual cuts in De Beers' purchases.
Under the document, De Beers will buy Alrosa's rough diamonds to the sum of 500 million euros in 2006, 420 million in 2007 and 340 million in 2008.
Alrosa's head Alexander Nichiporuk said Wednesday the two companies would pursue joint projects in geological surveying, production, mining and processing plants.
He said the companies would set up joint ventures for each project, and added that other partners in South Africa could join the ventures.
Nichiporuk also said that if based in Russia, a joint venture would have to be controlled by the Russian side.
