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Angola has officially announced the replacement of Alrosa, the Russian diamond giant, in its state-run diamond mining company, Catoca, signalling a significant shift in the country’s gemstone sector. This change is part of a broader strategy by Angola to distance itself from companies linked to Western sanctions on Russia following its military actions in Ukraine.
Diamantino Azevedo, Angola’s Minister of Mineral Resources, Oil, and Gas, confirmed that an Omani firm connected to Oman’s sovereign wealth fund would now take Alrosa’s place as a major stakeholder in Catoca. Alrosa had previously held a 41% stake in Catoca, a key player in Angola’s diamond production and the global diamond market.
Minister Azevedo explained that Alrosa’s involvement had become a liability, damaging Angola’s reputation in the international diamond industry. “Having sanctions-hit Alrosa as a shareholder was affecting Angola’s credibility in the global diamond market,” he said, highlighting the geopolitical and economic considerations behind the decision.
The move also affects the Luele mining project, another important diamond asset in Angola. With Alrosa exiting Catoca, the company will also relinquish its stake in the Luele venture. Alrosa has not commented on the change.
Although details of the agreement with the Omani company have not been revealed, this shift underscores Angola’s goal to strengthen its position in the global diamond industry amid geopolitical challenges. Replacing Alrosa aligns with Angola’s broader strategy to diversify its economic partnerships and reduce its exposure to international sanctions.
Catoca is vital to Angola’s mining sector, contributing a significant share of the country’s diamond production and export revenues. Its influence extends beyond Angola, making its shareholder structure of global importance.
The Omani firm’s involvement brings financial backing and strategic expertise from one of the Gulf’s leading sovereign wealth funds. This partnership marks Oman’s growing economic presence in Africa and highlights a broader trend of Gulf Cooperation Council countries seeking investment opportunities across the continent.
For Angola, this transition represents more than just a change in ownership; it is an opportunity to restore its credibility and reshape its role in the diamond industry, free from the constraints of sanctions and negative global perceptions. Since Alrosa has been under sanctions since 2022, Angola’s diamond industry has struggled to secure favourable trading terms and maintain strong market relationships. The replacement of Alrosa could be a turning point, allowing Angola to enhance access to international markets and attract more investment into its mining sector.
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While the specifics of the deal remain unclear, the strategic impact of this shift is likely to be felt in both the global mining and investment communities. Both Angola and Oman stand to benefit from this new partnership as Africa’s resource-rich countries increasingly align with the investment goals of Gulf nations.
