Russian diamond mining major ALROSA has bought a further 8.2 percent stake in Angola’s Catoca Mining for $70 million.
The purchase will increase ALROSA’s stake in Catoca, which works Angola’s largest diamond deposit, to an overall 41 percent. Endiama, the National Diamond Company of Angola, will hold another 41 percent, while LL International Holding B.V. will have an 18 percent stake.
The transaction is slated for completion in the next two months. With the increased stake, ALROSA will now have access to a production base outside Russia.
Catoca, with an estimated reserve of 60 million carats, sells an average 6.8 million carats a year. It accounts for more than 75 percent of all diamonds extracted in Angola.
The overseas expansion comes as the Russian Federal Anti-Monopoly Service (FAS) said it is investigating the forthcoming sale of ALROSA’s natural gas assets after a complaint from would-be buyer, energy giant Rosneft