Omani Company Takes Over Diamond Exploration in Angola
In a significant shift in Angola's diamond mining landscape, a subsidiary of Oman's sovereign wealth fund is set to replace Russia's sanctioned Alrosa in the state-run diamond mining company Catoca. This change comes as Angola seeks to distance itself from Alrosa, which has faced international sanctions since the onset of the war in Ukraine in 2022.
Angolan Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, announced that the new partnership will assume all rights previously held by Alrosa, which owned a 41% stake in Catoca. Azevedo stated, "From now on, we have a new partner, and this partner is the only one who will exercise the rights that Alrosa had until now." The minister emphasized that the withdrawal of Alrosa could impact Angola's credibility in the international diamond market, a sector where the country ranks as the sixth largest producer with an output of 8.76 million carats.
Impact of Alrosa's Withdrawal on Angola's Diamond Industry
Alrosa, which is the world's fourth largest producer of rough diamonds, has been a key player in Angola's diamond mining sector through its partnership with Endiama, the state-owned diamond company. The decision to end this partnership reflects Angola's strategic move to align itself with new partners amid geopolitical tensions. While specific details regarding the Omani company's plans have not been disclosed, the shift marks a pivotal moment for Angola's diamond industry, which has been under scrutiny due to its reliance on Russian partnerships.
Global Diamond Production Landscape
According to recent data, Russia remains the world's largest diamond producer, with an output of 41.92 million carats, followed by Botswana and Canada. Angola's production places it sixth globally, highlighting its significance in the diamond market. The ongoing changes in partnerships and the geopolitical climate may influence future diamond production and trade dynamics, particularly as countries navigate their relationships with sanctioned entities.
