Editor’s Note
This article details the exit of Russian diamond miner Alrosa from Angola, prompted by international sanctions. The company has sold its stakes in two major mines to an Omani state-owned fund, marking a significant shift in the regional diamond industry.
Russian diamond mining giant Alrosa has sold its shares in two major Angolan mines as international sanctions force the company to depart the Southern African country. The world’s biggest diamond mining company has ceased operating in Angola, offloading its stakes in the country’s key diamond mines to an Omani state-owned fund.
Moscow-headquartered Alrosa, which produces around 30% of the world’s diamonds and 90% of Russia’s diamond supply, had been a joint owner of two of Angola’s biggest diamond mines: the Catoca and Luele mines. Angolan state-owned company Endiama is the other joint shareholder. The Luele mine, located in northeastern Angola, is the country’s largest diamond mine and one of the world’s biggest by estimated resources. The Catoca mine – located on a kimberlite pipe near Saurimo in the Lunda Sul province – is recognized as the fourth largest diamond mine globally.
Confirming Alrosa’s departure on 28 November, Angola’s Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, said the move resulted from negotiations between the Angolan and Russian governments and was motivated by international sanctions imposed on Alrosa. In January, the European Union enforced sanctions on state-run Alrosa and its CEO Pavel Marinychev as part of a ban on diamond imports over the Ukraine war.
Alrosa’s Angola stakes will be taken over by Maden International Group, a subsidiary of the Sovereign Fund of the Sultanate of Oman, which was chosen as a replacement due to its “suitability, financial capacity and reputation.”
According to the minister, the transition process is already underway and should be carried out quickly, adding that the changeover has been conducted with caution to guarantee the interests of all parties involved.
In July, Angola introduced its Law to Combat Illegal Mining Activity to counter illicit mining practices. Reports suggest that there are around 1.3 million illegal miners in Angola operating nearly 300 large-scale dredgers, with the majority being diamond prospectors from foreign countries.