You're reading: Geologists on trail of diamonds in central Ukraine

Hopes for additional investments lifted

Ukraine is close to finding its most promising diamond deposit ever, if recent discoveries by geologists in Kirovohrad region pan out.

On the eve of the New Year, specialists from the State Geological Service of Ukraine (DGS) said all the signs point to a big kimberlitic pipe, or diamond-encrusted layer of earth, lying near an exploration site in the south-central region.

For Ukraine, which already has a developed cutting industry for small- and medium-sized diamonds, a major discovery could give a boost to domestic production of rough diamonds, industry specialists say.

“The geological features of the layers, as well as micro-diamonds that we have found at the site, indicate that the quality of the diamonds possibly lying there could match that of the diamonds produced by world leaders in Russia and South Africa,” said Anton Dzidzinsky, head of the department of geological exploration at DGS.

Long wait expected

Dzidzinsky says, however, that it could take up to five years before any actual diamonds could be extracted, and that’s only if the necessary financing is continuously provided. He said the Ukrainian government had allocated some $8 million for diamond exploration works this year. For comparison, Russian diamond production giant ALROSA spends about $30-35 million a year on exploration work.

Meanwhile, Ukraine has several potential diamond sites, including ones in Volyn region in northwestern Ukraine and in the southeast near the Sea of Azov, which could produce fine-quality diamonds, said Dzidzinsky. “I wouldn’t compare Ukraine’s diamond prospects to Russia or South Africa now, but there are certainly big plans for this industry’s development.” Some foreign investment also would not hurt, he added.

Currently, the only foreign company exploring promising diamond sites in Ukraine is Canada’s North Star Diamonds, which acquired three diamond projects in Volyn region in 2004. The company had invested some $450,000 in exploration activity in Ukraine since 1995, drilling 16 diamondiferous holes, the company’s press office said.

Dzidzinsky hopes more foreign investors will arrive soon, and some of the biggest seem poised to invest. “I know that the world’s biggest diamond producer, De Beers, is already interested in exploring Ukraine,” he said, adding that attracting non-state money to the country’s diamond exploration industry is one of the main goals of the State Program for Diamond Exploration over the next five years.