Angola’s state-owned diamond producer, Endiama Mining SA, acknowledged that some clients are hesitant to engage due to its partnership with Russia’s Alrosa PJSC, but emphasized that its diamond output is not subject to Western sanctions. Alrosa holds a 41% stake in the Catoca operation and a significant share in the Luele mine, while Endiama owns a majority in both.
José Ganga Júnior, Endiama’s CEO, noted that while some markets present challenges due to Alrosa’s involvement, Angola maintains full control over its operations. He refrained from commenting on whether there was external pressure to remove Alrosa from the mines but insisted that Alrosa has no operational influence.
In response to sanctions imposed by the Group of Seven (G-7) nations, including a ban on Russian diamonds, Endiama is working on a tracking system to identify diamonds from its mines. The G-7 sanctions expanded this year to include diamonds processed in third countries, alongside the direct ban on rough diamond imports from Russia. Alrosa, also sanctioned by the U.S. and the EU, still receives revenue from its Angolan ventures, but those funds remain in Angola and cannot be sent back to Russia.
Alrosa, which helped develop the Catoca and Luele mines, may consider selling its Angolan interests, as its partners believe its involvement hinders the mines’ development. Angola’s Minister of Minerals and Petroleum, Diamantino Azevedo, earlier described the partnership with Alrosa as “toxic.”
Globally, Alrosa competes with De Beers, owned by Anglo American Plc, for dominance as the world’s largest diamond producer.
