Russia sells shares in Angolan diamond mines
Angola has announced the sale of Russian diamond company Alrosa’s shares in two of its major diamond mines—Catoca and Luele—to Maden International Group, a subsidiary of Oman’s Sovereign Fund. This decision comes in response to international sanctions imposed on Alrosa due to Russia’s actions in Ukraine, which had hindered the commercialization of diamonds from these mines.
The sale, involving negotiations between Angola, Russia, and their respective entities, marks the official cessation of Alrosa’s operations in Angola. The transition is part of Angola’s broader strategy to revitalize its diamond sector. Despite global challenges, including a sharp decline in diamond prices during the first half of 2024, the country remains focused on growth. Angola aims to boost diamond output by 50% in 2024, targeting 14.6 million carats, up from 9.7 million in 2023, with revenue projections reaching $2.5 billion compared to $1.51 billion in 2023.
Catoca, Luele mines
The Catoca mine, one of the world’s largest diamond mines, was previously a joint venture between Angola’s state-owned company Endiama and Alrosa, with each holding a 41% stake. The Luele mine, a newer operation, had a similar partnership structure. The European Union’s sanctions on Alrosa and its CEO in January 2024 led to significant challenges in marketing diamonds from these mines, prompting Angola to seek alternative partnerships.
These developments coincide with increased international attention on Angola’s resource potential, highlighted by U.S. President Joe Biden’s upcoming visit. This visit reflects Angola’s strategic importance in critical minerals and energy, aligning with global efforts to diversify supply chains amid geopolitical tensions. This move also indicates Angola’s intent to diversify its international partnerships and reduce reliance on sanctioned entities, thereby bolstering its credibility in the global diamond market
