Alrosa to start diamond mining in Angola in 3-4 years

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Alrosa is expected to start diamong mining in Angola (the Luaxe project) in 3-4 years, as the head of company Andrey Zharkov said on the 2nd Eastern Economic Forum.


Capital investments into the Luaxe project is estimated at $1 billion. Launching project requires $200-300 million, volume of output is predicted to be 10 million of carat per year,  the Prime news agency reported.

Russia sold 10.9% stake in Alrosa PJSC for 52.2 bln roubles

It’s a giant field, and this is why we intend to launch it slowly in two or three stages. It’s planned to develop one of blocks in next three or four years, – Andrei Zharkov said, – Additional exploration is being conducted now which allow to start constructing”.

According to the CEO, project operator in charge of interest allocation hasn’t been created yet. “Angola has a controlling block of shares, 50%. Angola’s Endiama plans to make investment in the amount of 30%, and the rest will be allocated among other Angolan companies. Further, we expect Alrosa to have a major part of the other 50% and Catoca – the smaller part”, – Zharkov said.

The Catoca diamond mine is the fourth largest diamond mine in the world, and is located in Angola. The mine is owned by a consortium of international mining interests, including Endiama (the state mining company of Angola) (32.8% ownership), Alrosa of Russia (32.8%), Odebrecht of Brazil (16.4%), and the Diamond Finance CY BV Group (16.8%). The mine is located on a kimberlite pipe.

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