Angola’s Catoca lost about $464m due to government’s sales system
Luanda — Angola’s Catoca, the world’s fifth-largest diamond mine, estimates it lost $464m over the past six years due to a government-imposed marketing system that obliged it to sell production below international prices, a company presentation seen by Reuters showed. The figure was presented during a private meeting in March between the diamond industry and the minister for natural resources and oil, Diamantino Azevedo. President João Lourenço has vowed to reform Angola’s secretive diamond industry to increase production and improve returns as Africa’s second largest oil producer looks to diversify its economy. Despite being the world’s fifth-largest producer of diamonds, major international miners have largely shunned Angola due to unattractive investment terms. All production in Angola must be sold through state-owned diamond trading company Sodiam, which makes the stones available to buyers of its choosing. Two industry sources with knowledge of the matter have told Reuters that...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.