KEY POINTS
- Angola replaces Alrosa with an Omani firm in Catoca diamond mine ownership.
- Alrosa’s exit follows sanctions, damaging Angola’s market credibility.
- Catoca accounts for 75% of Angola’s diamond production.
Angola has ended its long-standing partnership with Russian state-controlled Alrosa, the world’s largest rough diamond producer by volume, replacing it with a subsidiary of Oman’s sovereign wealth fund in the Catoca diamond mining company.
The decision follows pressure on Angola to sever ties with Alrosa after Western sanctions were imposed on the Russian firm in 2022 in response to Moscow’s invasion of Ukraine. The sanctions had strained Angola’s credibility in the global diamond market, prompting a strategic pivot.
Oman steps in
“From now on, we have a new partner that will assume the rights previously held by Alrosa,” said Diamantino Azevedo, Angola’s Minister of Mineral Resources, Oil, and Gas, during an interview with a national radio station on Thursday. He confirmed that Alrosa would no longer hold stakes in Catoca or its related ventures, including the Luele diamond mining project.
While details of the deal remain sparse, Angola’s shift to an Omani partner underscores the country’s commitment to maintaining its standing in the international diamond industry. The Omani firm, whose identity has not been disclosed, will take over Alrosa’s 41% stake in Catoca, Africa’s largest diamond mine and one of the most significant sources of rough diamonds globally.
The move is expected to stabilize Angola’s position in the diamond sector, ensuring compliance with international norms while fostering new strategic partnerships.
Market credibility restored
According to Reuters, Minister Azevedo emphasized that retaining Alrosa as a shareholder had damaged Angola’s reputation among international buyers and investors. By aligning itself with Oman, Angola aims to strengthen its credibility and attract further investment into its mining sector, a critical component of its economy.
Impact of Alrosa’s exit
Alrosa’s departure from Catoca marks a significant shift in Angola’s diamond strategy. The Russian firm had been a key player in the Angolan diamond industry for decades. However, geopolitical tensions and sanctions forced Angola to explore alternative partnerships to ensure uninterrupted production and access to global markets.
Angola’s diamond ambitions
Catoca, co-owned by Angola’s state diamond company Endiama, is central to the country’s aspirations of becoming a leading diamond producer. The mine accounts for more than 75% of Angola’s diamond output, making it a cornerstone of the national economy.
The transition to an Omani partner reflects Angola’s broader strategy to diversify its partnerships, reduce dependence on sanctioned entities, and solidify its foothold in the global diamond market.
By replacing Alrosa, Angola signals its readiness to adapt to shifting geopolitical landscapes while safeguarding its critical mining assets and upholding international trade standards.
