Oman has acquired Russia’s stake in Angola’s diamond mining business, marking a significant shift in the sector as international sanctions against Russia continue to reshape global economic partnerships.
According to Bloomberg, Oman’s Maaden International Investment LLC, a state-backed investment vehicle, purchased the 41% stake held by Russia’s Alrosa in the Catoca diamond mine. The sale was announced by Diamantino Azevedo, Angola’s Minister of Mineral Resources, in a statement on Thursday.
Background to the Sale
Alrosa, a state-controlled diamond mining company and one of the world’s largest producers of rough diamonds, has been under U.S. sanctions since April 2022. The European Union followed suit in early 2024, further restricting the company’s global operations. These sanctions have rendered Alrosa unable to transfer dividends from its share in the Catoca venture for three consecutive years, accumulating $322 million in unclaimed funds, according to Angola’s financial publication EXPANSÃO.
“The partnership with Alrosa is no longer viable due to the international sanctions imposed on Russia,” Azevedo remarked, confirming the company’s exit from the joint venture.
Strategic Role of Oman
Maaden International, which leads a consortium of Omani investors under the umbrella of the state investment fund, has been steadily increasing its presence in Angola’s resource sector. In January 2024, Maaden acquired a 24% stake in a gold mining company previously owned by Russian investors, including billionaire Alexander Nesis. The latest acquisition underscores Oman’s strategic interest in expanding its footprint in the lucrative mining industry in Angola, one of the world’s most resource-rich nations.
The Catoca diamond mine, which produces approximately 75% of Angola’s diamonds, is a key asset for the country’s economy. By taking over Alrosa’s stake, Oman strengthens its influence in one of Angola’s largest revenue-generating industries.
Angola’s Push for Change
Angola’s government has been vocal in its desire to sever ties with Alrosa, citing the reputational risks associated with continued collaboration. As early as January 2024, officials expressed concerns over the “toxicity” of Alrosa’s involvement in the joint venture, given the escalating sanctions regime.
The sale to Oman also reflects Angola’s broader efforts to diversify its partnerships and attract investment from Gulf states and other global players. Under the leadership of President João Lourenço, the Angolan government has prioritised economic reform and sought to position the country as an attractive destination for foreign direct investment, particularly in its resource extraction sectors.
Implications for the Diamond Market
This development comes amid a shifting global diamond market, where geopolitical tensions have reshaped trade dynamics. The exit of Alrosa from the Angolan diamond sector reduces Russia’s influence in the global supply chain and strengthens the presence of Middle Eastern investors in Africa’s resource-rich economies.
Oman’s increased involvement is also a testament to the Gulf region’s broader push to diversify economies away from oil dependency, with significant investments in mining, energy, and technology sectors.
Looking Ahead
The transition marks a pivotal moment for Angola’s diamond industry. By cutting ties with Russian entities and fostering relations with new investors, Angola signals a strategic realignment that aligns with its broader economic goals. For Oman, the acquisition consolidates its position as a rising player in global mining, with implications that could extend beyond Angola.
As Angola continues to reposition itself in the global marketplace, the collaboration with Omani investors highlights the growing interplay between African economies and Gulf states in reshaping traditional power structures in resource industries.
