Angola and Russia are in discussions to allow Russian diamond company Alrosa to maintain its 41% stake in the Catoca mine, despite ongoing G7 sanctions targeting Russian entities.
This development follows earlier reports that suggested Alrosa might sell its stake in the mine, which produces over 75% of Angola’s diamonds. Both governments are reportedly working to “remove obstacles” caused by the sanctions, potentially shifting the direction of previous negotiations.
Background on Catoca Mine and Sanctions
The Catoca mine, one of the world’s largest diamond mines, plays a significant role in the diamond production of both Angola and Alrosa. However, G7 sanctions against Russia have created complications for Alrosa’s involvement in the mine. These sanctions prompted Angola to urge Alrosa to withdraw from Sociedade Mineira de Catoca, the company that operates the mine.
Although it was reported in May that Alrosa planned to sell its stake, recent statements suggest a reconsideration. Angola’s ambassador to Russia, Augusto da Silva Cunha, confirmed that efforts are ongoing to resolve the difficulties caused by the sanctions.
Negotiations and Stakeholder Discussions
While Alrosa’s potential sale of its stake seemed likely earlier this year, with Russian officials negotiating with “friendly investors,” the latest developments indicate that keeping Alrosa involved is being reconsidered. Angola’s ambassador commented, “It is true that the sanctions imposed on Russia have affected Alrosa’s operations at the Catoca mine. But despite this, Angola and Russia are developing mechanisms to overcome the difficulties that have arisen.”
This suggests that current discussions are focused on finding ways to maintain Alrosa’s role in the mine, though the specific details remain unclear.
The outcome of these discussions remains uncertain, and whether a solution can be found that allows Alrosa to retain its stake is yet to be determined.
