Angola has sidelined Alrosa from all its diamond-mining interests in the country after sanctions on the Russian miner caused bottlenecks in selling rough.
Alrosa has sold its stake in Angola’s Catoca and Luele mines to Oman-based investment fund Maaden International, Angola’s Ministry of Mineral Resources, Petroleum and Gas said last week. The parties did not disclose the terms of the deal. In 2018, the Russian miner spent $70 million to increase its stake in Catoca to 41%.
“Sanctions on the Russian diamond industry created difficulties for the Angolan diamond industry and for the credibility of our diamonds in the international market,” said Angolan Mining Minister Diamantino Azevedo during a special council meeting. “[This] led President João Lourenço to instruct the sector’s ministry and [state-owned diamond company] Endiama [a partner in the Catoca mine] to find a solution that would satisfy both parties.”
The US first imposed sanctions on Alrosa in March 2022, following the start of its attack on Ukraine. The UK and EU followed closely behind. Since then, Alrosa has seen a decrease in sales, leading Russian state-owned gem and precious metal repository Gokhran to bail it out several times.
“Up until now, our country has never been sanctioned because the presidents of Angola, Namibia and Botswana have adopted a common position with the Group of Seven (G7).” Azevedo added.
The transition process is already underway to move ownership from Alrosa to Maaden International. The sale comes as President Joe Biden is poised to make a historic visit to Angola on December 2, the first by a US leader to the country.
Image: A rough diamond from the Catoca mine. (Alrosa)
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