The exit of Russian diamond company Alrosa from Angola’s Catoca and Luele mines was officially finalized on Monday through the signing of three agreements between Endiama, Angola’s national diamond company, and Taaden, a state-owned mining company from Saudi Arabia.
Endiama Chairman José Ganga Júnior explained that Alrosa’s departure was driven by operational difficulties stemming from sanctions imposed on Russia.
Over the past 15 months, efforts were made to secure a viable solution for Catoca and Luele, which together account for over 80% of Angola’s diamond production.
New Ownership Structure:
- Catoca Mine: Endiama retains 59%, while Taaden now holds 41%.
- Luele Mine: Endiama, along with various social funds, holds 51%, while Taaden controls 49%.
- Hidrochicapa Hydroelectric Project: Formerly operated by Alrosa, its assets have been fully transferred to Luele Mining Company.
Taaden Chairman Abdul Aziz al Maqbali described the agreement as a historic moment for both nations, emphasizing that the company’s goal is long-term investment, not just resource extraction.
While declining to disclose initial investment figures, he reaffirmed Taaden’s commitment to developing Angola’s diamond sector in partnership with Endiama.
Angola’s Minister of Mineral Resources, Oil, and Gas, Diamantino Azevedo, noted that Alrosa’s exit involved a two-phase process:
- Government-Level Discussions: Finding solutions to mitigate the impact on the diamond sector.
- Private Negotiations: Establishing a new partnership between Endiama and Taaden.
He highlighted that the global diamond industry is evolving, not only due to sanctions but also because of the increasing presence of synthetic diamonds.
Azevedo dismissed concerns about diplomatic tensions, emphasizing that Alrosa’s exit was a mutual and amicable decision.
With this transition, Angola is strengthening ties with Saudi Arabia while ensuring stability in its diamond industry, positioning itself for continued growth in the global market.
