Alrosa parted ways with major Lule diamond deposit when selling Catoca - Moiseyev

ST. PETERSBURG. June 19 (Interfax) - Alrosa parted ways with the major Luele diaond deposit, formerly Luaxe, when it sold its stake in Angola's Sociedade Mineira de Catoca, Deputy Russia Finance Minister Alexei Moiseyev told reporters.

"When it exited Catoca, it also exited Luele," Moiseyev said, adding that the Russian company's participation in the project was indirect; he said Alrosa did not have a direct stake in Luele.

Moiseyev described the deal to sell 41% of Catoca as a good one for Alrosa because it took place against the backdrop of some improvement in the diamond market situation in the first quarter of 2025. "We made the right decision," he said.

Taadeen, owned by the Omani sovereign wealth fund, became the owner of the 41% of Catoca previously owned by Alrosa in June. The other 59% is owned by the Angolan state-owned Endiama.

Luele is considered to be the only large diamond deposit discovered in the last 20 years. Production began in 2023, with annual output of around 4 million carats and the potential to increase it to 8 million carats. It is anticipated this deposit will produce 628 million carats by 2083. Luele's biggest shareholders are Catoca with 50.5% and Endiama with 25%.

Alrosa said in a report that as of 2017, a 50.5% stake in the then Luaxe project was owned not by Catoca, but by the Catoca joint venture with Alrosa. Thus, the Russian company could have held about 16.5% of Luaxe. In addition, Alrosa was going to acquire 8% directly.

The Angolan government's policy changed dramatically in 2022, when, faced with difficulties in selling Catoca diamonds due to Russian participation in this company, it began negotiations on the sale of Alrosa's stake