Russian diamond giant ALROSA may increase its stake in the Catoca project in Angola, according to Forbes' Russian edition, translated by Rough/Polished.
The diamond company is interested in the share, "which later would make it possible to consolidate the revenues and reserves", ALROSA's president Andrei Zharkov told Forbes.
Established in 2014, the Catoca Mine is owned and operated by Sociedade Mineira de Catoca, a joint venture of the state-run mining company Endiama (32.8%), Alrosa (32.8%), China Sonagol International (18%) and Brazil's Odebrecht Mining (16.4%). Representatives of ALROSA and other shareholders of Catoca did not comment on the issue.
ALROSA plans to boost its Catoca share at the expense of Brazilian company, Deputy Finance Minister Alexei Moiseev said.
ALROSA has to buy 17.2% to gain controlling stake, which will add about 15% of the diamond production and 15-20% of net profit to the company, analysts at BCS wrote in a review. The company may also buy more shares from the Chinese company, they add.
The Catoca Mine produces more than 6 million carats of diamonds anually, while the reserves are estimated at 60 million carats, ranking it currently the world's fifth biggest diamond mine by reserve. It has an expected mining life of 30 years.
Source: The Diamond Loupe