Sociedade Mineira de Catoca, operating in Lunda-Sul, is actively working to sell its diamond production from March and April to ensure steady cash flow, despite a decline in international diamond prices.
Engrácia João, Deputy General Director for Administration, shared these details during a press briefing in Dundo, Lunda-Norte.
João noted that, like other operators, Catoca is grappling with less favorable market conditions, where diamond prices have dropped to between 35% and 50% below the expected levels.
To address its financial obligations—including profit-sharing with partners, employee salaries, and taxes—Catoca has opted to sell only a portion of its production.
This strategic move aims to balance the company’s immediate cash needs while managing the reduced revenue from diamonds.
João explained that the drop in prices has led to the retention of many carats, as current proposals do not cover production costs, and regular buyers are scarce.
Despite these challenges, Catoca is focused on meeting its production targets and ensuring financial stability.
So far, the company has sold diamonds from January and February and is working to sell the March and April inventory.
João emphasized that all aspects of the company’s operations, including financial, logistical, and administrative functions, are being carefully managed to ensure survival.
Catoca, headquartered in Lunda-Sul and a major player in Angola’s diamond industry, is also investing in the modernization of its treatment plants.
This includes exploring diamonds in waste material from the plant, which contains small yet valuable particles.
In the first half of the year, Catoca extracted 8.2 million cubic meters of ore and processed 5.8 million cubic meters.
The company employs over 5,000 workers, with 2,300 directly and more than 3,000 indirectly involved.
As the fourth largest open-pit mine globally, Catoca is a leading force in Angola’s diamond sector, responsible for over 75% of the country’s diamond production.
The company’s ownership includes the National Diamond Company of Angola (Endiama) with a 59% stake and the Russian multinational Alrosa with 41%.
Catoca’s diamond operations are based in Lunda-Sul, about 35 kilometers from the city of Saurimo.
