Friday, November 29, 2024

Oman firm replaces sanctioned Alrosa in Angolan diamond miner

Bloomberg News | November 28, 2024 | 

Credit: Catoca Mining Company

An Omani state-backed fund has acquired shares in Angola’s Catoca diamond-mining joint venture from Russia’s Alrosa PJSC.


Maaden International Investment LLC’s stake purchase was announced by Mineral Resources Minister Diamantino Azevedo on Thursday. Alrosa, which held a 41% interest in the Catoca operation, has been sanctioned by the US, EU and their allies.

Alrosa “will no longer be part of this partnership due to international sanctions imposed on Russia,” Azevedo said in the capital, Luanda. The restrictions were “affecting Angola’s credibility in the international diamond market,” he said.

While Alrosa is mainly active in Russia, it has been present in Angola since the early 1990s and helped develop Catoca – majority owned by the Angolan state – into one of the world’s largest diamond mines.

Azevedo had said earlier that the state-controlled Russian company had become a “toxic partner due to the global context.” Aysen Nikolayev, president of the Yakutia region in Russia, which owns a stake in Alrosa, said in September that the company was discussing the future of its Angolan projects and in talks with potential investors.

The Russian company vies with Anglo American Plc’s De Beers as the world’s largest producer of diamonds. Diamond prices are currently in a prolonged slump amid weak Chinese demand, too much supply and pressure from lab-grown gems.

Maaden International, which is owned by a consortium of Omani investors led by a state-owned firm, bought a 24% interest in a gold producer from Russian investors, including billionaire Alexander Nesis, in January.

Alrosa’s press service didn’t immediately respond to a request for comment.

(By William Clowes and Candido Mendes)


Botswana to become certifier in G7 Russian diamond ban

Reuters | November 27, 2024 | 


Stock Image

Major African diamond producer Botswana will join Antwerp as an origin certifier of rough diamonds for export to the G7 which banned imports of Russian stones from the start of this year, a joint statement said on Wednesday.


The addition of Botswana looks set to salvage implementation of the ban. The initial system would have seen all diamonds go through Europe’s diamond hub in Antwerp for verification, backed by a new tracing system.

African diamond producers Angola, Botswana and Namibia, as well as diamond miner De Beers, had said the mechanism was unfair and would hurt their economies.

“Botswana and the G7 diamond technical team are now crafting a roadmap to address any identified gaps, aiming to have the export certification node fully operational in Botswana as soon as possible next year,” the statement said.

The Group of Seven (G7) nations ban on direct Russian diamond imports took effect on Jan. 1, followed by a ban on Russia-origin diamonds via third countries from early March.

The tracing system was meant to be up and running by Sept. 1, but the EU delayed the implementation to March 2025.

(By Julia Payne; Editing by Ros Russell)

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