Oman firm acquires shares in Angolan diamond mines
Oman’s Maaden International Investment LLC has acquired shares in Angola’s Catoca diamond-mining joint venture, formerly held by Russia’s Alrosa PJSC. The transaction was confirmed by Angola’s Mineral Resources Minister, Diamantino Azevedo, who cited international sanctions on Russia as a driving factor. These sanctions, imposed by the US, EU, and allies, were undermining Angola’s credibility in the global diamond market.
Catoca mine
Alrosa, previously holding a 41% stake in Catoca, has faced increasing international isolation, making its continued involvement problematic. The Catoca mine, one of the largest diamond operations worldwide, has been integral to Angola’s diamond industry, with Alrosa playing a significant role in its development since the 1990s.
The Angolan government had been seeking a resolution to Alrosa’s participation amid its “toxic” status due to geopolitical tensions. This acquisition by Maaden International, led by an Omani state-backed consortium, marks a strategic shift, ensuring the operation’s stability and alignment with international standards. This deal follows Maaden International’s earlier acquisition of a 24% stake in a Russian-owned gold producer.
The diamond market, however, remains under pressure, with a prolonged slump caused by subdued Chinese demand, oversupply, and competition from lab-grown diamonds. Alrosa, which competes globally with De Beers, has yet to comment on the divestment.
Mining in Angola is an activity with great economic potential since the country has one of the largest and most diversified mining resources of Africa. Angola is the third largest producer of diamonds in Africa and has only explored 40% of the diamond-rich territory within the country.
