ALROSA is contemplating divesting its holdings in Sociedade Mineira de Catoca because of the deterrent effect of US sanctions imposed on Russian diamonds since March 2022, coupled with the weakening of diamond prices.
ALROSA holds a 41% stake in Catoca.
Endiama, a state-owned enterprise, possesses a 41% ownership interest in the mine, with Leviev International-LLI (China) holding the remaining 18%.
According to Africa Intelligence, ALROSA and Endiama are presently in negotiations over the former's departure.
It cited an unidentified source as saying that no agreement had been reached as of yet.
The report stated that US sanctions against the diamond company and a decline in international demand for diamonds both influenced ALROSA's decision to depart Catoca.
In addition to the prohibition on trading in US dollars imposed by US sanctions, ALROSA has been unable to transfer $185 million in dividends from Angola.
ALROSA, a significant contributor with a 27% share of the worldwide diamond industry, has been the principal diamond partner of Angola since the 1990s.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
