Angolan diamond mine

Sanctioned Russia Sells Shares in Angolan Diamond Mines

Angola has announced that Russian shares in two of its major diamond mines have been sold to an Omani-backed fund as a result of international sanctions, a government official said.

Russia’s diamond giant Alrosa was until now a joint owner of Angola’s Catcoa mine, the fourth-largest in the world, and Luele mine, in partnership with the southern African nation’s state-owned company Endiama.

The European Union imposed sanctions on Alrosa, also state-owned, and its CEO in January as part of a ban on diamond imports over the Ukraine war.

This led to “a block on the commercialization” of diamonds from Catcoa and Luele mines, Angola’s Minister of Mineral Resources and Petroleum Diamantino Azevedo said Thursday.

After “negotiations between the Angolan and Russian governments, as well as between Endiama and its partner,” Alrosa has now “officially ceased operating in Angola,” Azevedo said.

The company has been “replaced by Maden International Group, a subsidiary of the Sovereign Fund of the Sultanate of Oman,” the minister added.

He said the transition process was “already underway and should be conducted swiftly.”

The sale comes as the United States President Joe Biden was expected to travel to Angola on Dec. 2.

The visit, his first to Africa, underscores the strategic importance of the oil and mineral-rich country where a massive U.S.-led project is underway to export critical minerals.

Source: Themoscowtimes

De Beers Finds High-Potential Kimberlite Sites in Angola

De Beers shows Al Cook, CEO, De Beers Group (left) and Ganga Junior, CEO of Endiama signing the MoU.

De Beers says it has identified eight new high-potential kimberlite sites in Angola, according to the Portuguese news agency Lusa.

It resumed explorations in the country in 2022, after a 10-year gap, and signed a memorandum of understanding (MoU) in February with Angola’s National Mineral Resource Agency, and its state-owned mining and trading companies, Endiama and Sodiam.

Aerial surveys by De Beers have so far identified eight sites in Lunda Sul, the northeastern province that is home to the huge Catoca mine. De Beers is now exploring six more areas, together with Endiama.

Angola has yet to explore 60 per cent of its diamond-rich territories. It opened its new Luele diamond mine last November, in a move that is forecast to increase annual production from 9.7m carats in 2023 to 14.6m carats this year.

Under the terms of the MoU there will be a review of kimberlite deposits to be explored and the transparency and traceability of diamond production will be promoted.

Source: IDEX

Angolan diamond mine says Russia sanctions could hurt operations

Endiama, which holds the exclusive concession for diamond mining rights in Angola, has already flagged an almost one-third reduction in diamond output this year.

Angola’s state-run diamond miner Endiama could face a hit to its operations as Western sanctions on Russia could delay supplies of parts and machinery, according to a government brochure.

The government publication was made available at the Mining Indaba conference in Cape Town on Monday.

Western nations have unleashed crippling economic sanctions against Russia after Moscow’s invasion of Ukraine in late February.

Endiama, which holds the exclusive concession for diamond mining rights in Angola, has already flagged an almost one-third reduction in diamond output to 10.05 million carats this year, from a forecast 13.8 million carats.

The company expects revenue of about $1.42bn from the sale of its diamonds this year.

“One of the great challenges for 2022 will certainly be to maintain the sustainability of the mines while the war between Russia and Ukraine lasts,” said the government brochure, “since the sanctions that the United States and Western countries have imposed on Russia may affect some national mining companies, delaying the supply of some machinery, parts and spares.”

Endiama has signed contracts with Rio Tinto to explore its Chiri mine in the Angolan province of Lunda Norte, while another project, Luaxe, was also expected to begin pilot production, it added, without providing a timeline.

Last month, diamond miner De Beers signed two mineral investment contracts with the Angolan government, the Anglo American subsidiary said ahead of a return to the country it left in 2012.

Source: Reuters