Alrosa's Angola venture suffers COVID-19 closure

Angolan diamond mining firm Sociedade Mineira de Catoca (Catoca Mining Society), which operates the country’s Catoca mine, has suspended operations and launched cost-cutting measures due to operating restrictions and a drop in demand caused by the COVID-19 pandemic.
Alrosa's Angola venture suffers COVID-19 closure Alrosa's Angola venture suffers COVID-19 closure Alrosa's Angola venture suffers COVID-19 closure Alrosa's Angola venture suffers COVID-19 closure Alrosa's Angola venture suffers COVID-19 closure

Sociedade Mineira de Catoca is responsible for the extraction of more than 75% of Angolan diamonds

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The operator, a joint venture between state-owned diamond firm Endiama and Russia's Alrosa, has closed a diamond processing factory and suspended prospecting work in other concessions, reported state news agency Angop.

Catoca Mining Society has readjusted its projected production volumes, and postponed some new investments, added the statement. It has also launched better monitoring of expenses in production, such as energy, water, fuel and material used in the emulsion process.

The company said the measures at the world's fourth-largest diamond mine, which is located roughly 840km east of the capital Luanda, were necessary as sales are at a standstill on the global market.

"Diamonds are not being bought or sold. As a result, the companies in this sub-sector have stopped earning revenue … Angola's largest diamond cutter is now in a stagnant market."