Angola has announced that Russian shares in two of its major diamond mines have been sold to an Omani-backed fund as a result of international sanctions.
Russia’s diamond giant Alrosa was until now a joint owner of Angola’s Catcoa mine, the fourth largest in the world, and Luele mine, in partnership with the southern African nation’s state-owned company Endiama.
Angola’s Minister of Mineral Resources and Petroleum, Diamantino Azevedo said the European Union imposed sanctions on Alrosa, also state-owned, and its CEO in January as part of a ban on diamond imports over the Ukraine war.
This led to a block on the commercialisation of diamonds from Catcoa and Luele mines.
Azevedo said after “negotiations between the Angolan and Russian governments, as well as between Endiama and its partner,” Alrosa has now “officially ceased operating in Angola.
The minister added that the company has been replaced by Maden International Group, a subsidiary of the Sovereign Fund of the Sultanate of Oman.
He said the transition process was already in process and should be conducted swiftly.
The sale comes as the United States President Joe Biden was expected to travel to Angola on December 2.
The visit which is his first to Africa, underscores the strategic importance of the oil and mineral rich country where a massive US-led project is in the process to export critical minerals.
Angola is ambitiously aiming to boost its diamond output by 50% in 2024, targeting 14.6 million carats, up from 9.7 million in 2023. This surge is expected to generate $2.5 billion, significantly up from $1.51 billion last year.
From January to May 2024, Angola extracted 4.2 million carats, creating $288 million in revenue. The Catoca and Luele mines played a crucial role, contributing 88% of the output from primary sources.
Angola’s diamond industry faced unexpected challenges as prices dropped dramatically in the first half of 2024.
