Angola has replaced Alrosa, the Russian diamond mining giant, with Oman-based investment fund Madden International in its diamond mining operations, citing international sanctions that disrupted the industry.
The Transition From Alrosa to Madden International
Alrosa has sold its stakes in Angola’s Catoca and Luele mines to Madden International, according to Angola’s Ministry of Mineral Resources, Petroleum and Gas. While the terms of the deal were not disclosed, the decision marks a significant shift for Angola’s diamond industry.
In 2018, Alrosa invested $70 million to increase its share in the Catoca mine to 41%, making it a key player in Angola’s mining sector. However, sanctions imposed on Russia following its 2022 invasion of Ukraine led to declining sales and reputational challenges for Angola’s diamond exports.
“Sanctions on the Russian diamond industry created difficulties for the Angolan diamond industry and for the credibility of our diamonds in the international market,” explained Angolan Mining Minister Diamantino Azevedo during a council meeting. President João Lourenço instructed the ministry and Endiama, Angola’s state-owned diamond company, to find a solution that aligned with international market expectations.
The Global Fallout of Sanctions
The U.S. first imposed sanctions on Alrosa in March 2022, with the UK and EU following suit. These sanctions crippled Alrosa’s sales, prompting multiple bailouts by Gokhran, Russia’s state-owned gem and precious metals repository.
By divesting Alrosa’s interests, Angola aims to restore its diamond trade credibility and strengthen its position in the global market. The ownership transition to Madden International is already in progress.
A Historic Presidential Visit
The announcement coincides with a highly anticipated visit by U.S. President Joe Biden to Angola on December 2, 2024. This historic visit will mark the first time a sitting U.S. president visits the country, reflecting Angola’s growing importance on the global stage.