The investment by Maaden International Investment LLC, which is a subsidiary of the sovereign wealth fund in Oman, has successfully removed the developing international pressure from the Angolan government, which was due to the diamond-mining joint venture with Russia's Alrosa, who are now under sanctions by G7 nations, according to an Angolan chief global economist and diamond mining expert.
Dr. M'zée Fula-Ngenge who is also the chairperson of the African Diamond Council told Rough & Polished on Friday that the Omani investors were keen to participate and Angola views Oman as one of the safest countries in the Gulf Cooperation Council (GCC) region.
“With Angola welcoming the Omani buyout of Alrosa’s 41% stake in the Catoca mine, the calculated move impressively highlights the African nation’s global investment appeal in mining as well as in other disregarded sectors possessing similar potential, such as agriculture, tourism and logistics,” he said.
Bloomberg quoted Angolan Mineral Resources Minister Diamantino Azevedo as saying on Thursday that Alrosa “will no longer be part of this partnership due to international sanctions imposed on Russia.”
He said the sanctions were “affecting Angola’s credibility in the international diamond market.”
Alrosa had operated in Angola since the early 1990s and helped develop Catoca into one of the world’s largest diamond mines.
Azevedo had said earlier this year that Alrosa had become a “toxic partner due to the global context.”
Luanda felt Alrosa’s participation as an investor was hampering the development of Catoca, the world’s fourth-largest diamond mine as buyers were shunning stones linked to the Russians.
Alrosa is yet to confirm the transaction.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
