07/11/2024
Mining News

Catoca diamond mine in Angola and Russia’s Alrosa work to repair relations amid sanctions

The Catoca diamond mine in Angola, the fourth-largest open-pit diamond mine globally and a major source of Angola’s diamond production, is working to mend its relationship with Russia’s Alrosa. Alrosa holds a 41% stake in the mine. Recent tensions between the two parties arose due to international sanctions impacting diamond sales from Catoca.

Augusto da Silva Cunha, Angola’s Ambassador to Russia, addressed the situation at the Eastern Economic Forum in Vladivostok, Russia. Cunha confirmed that while sanctions have indeed affected Alrosa’s operations, both Angola and Russia are actively working to resolve the issues and overcome the challenges posed by these sanctions.

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“The sanctions imposed on Russia have impacted Alrosa’s activities at the Catoca mine. However, Angola and Russia are developing solutions to address these difficulties,” Cunha stated.

Earlier this year, the Angolan government had requested Alrosa to exit the Catoca mining project due to the sanctions that disrupted the sale of diamonds. In response, Alrosa sought to safeguard its investments in the mine, while Angolan officials aimed to avoid financial compensation.

In June, Russian Deputy Finance Minister Alexey Moiseyev indicated that Alrosa was looking to transfer its stake in the Angolan asset to reliable new owners and was actively pursuing a sale.

As the world’s largest diamond mining group, Alrosa produced approximately 34.6 million carats of diamonds in 2023.

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