An Omani firm has taken over Alrosa’s stake in Angola’s Catoca diamond-mining venture, responding to sanctions against the Russian company impacting its international credibility. This change is part of Angola’s efforts to stabilize its diamond industry and restore market confidence amid declining prices and rising competition from lab-grown stones.
An Omani state-backed investment fund has acquired shares in Angola’s Catoca diamond-mining joint venture, previously held by Russia’s Alrosa PJSC, which had a 41% stake in the operation. The Minister of Mineral Resources, Diamantino Azevedo, announced the acquisition and highlighted that Alrosa’s removal was necessary due to international sanctions imposed on Russia, which have impacted Angola’s reputation in the global diamond industry. Alrosa, a major player in the diamond sector, has operated in Angola since the 1990s, contributing significantly to the development of Catoca, one of the largest diamond mines in the world. This realignment comes as Alrosa has been considered a “toxic partner” amid current geopolitical tensions and has prompted discussions regarding its Angolan operations and potential new investor involvement.
The diamond mining sector is experiencing significant upheaval due to international sanctions against Russia following its geopolitical actions. Alrosa, once a leading partner in diamond operations in Angola, has seen its credibility questioned because of these sanctions. The Catoca mining joint venture, which is majority-owned by the Angolan government and is among the world’s largest diamond mines, is undergoing a transformation with the entry of Omani investors to replace the sanctioned Russian company. Diamond prices have been declining recently, exacerbated by rising competition from lab-grown gems and decreasing demand, particularly from China.
The acquisition of Alrosa’s stake in the Catoca diamond-mining venture by the Omani state-backed fund represents a significant shift in the ownership dynamics within Angola’s diamond industry. As geopolitical tensions lead to the removal of Russia’s involvement in key projects, the Angolan government seeks to enhance its credibility and restore confidence in its diamond markets. The future of diamond production in the region may hinge on securing stable partnerships beyond the troubled associations with sanctioned entities.
Original Source: www.mining.com
