President of Angola Approves ALROSA’s Increased Participation in Catoca

Mining and Exploration
15/01/2018 00:04

The President of the Republic of Angola João Lourenço signed the Decree permitting the redistribution of 16.4% stake in the share capital of Catoca Ltd Mining Co to Wargan Holdings Limited, which belongs 100% to PJSC ALROSA. At a later stage, a 16.4% stake in Catoca will be equally distributed between ALROSA and ENDIAMA E.P., a national diamond mining company. The additional 8.2% stake will increase ALROSA's total stake in the company to 41%. The Decree of the President of the Republic of Angola will come into force early in January 2018. The transaction will be legally formalized in February-March this year. Upon its completion, the share capital of Catoca Ltd Mining Co will be distributed as follows: PJSC ALROSA – 41%, ENDIAMA E.P. − 41%, LL International Holding B.V. − 18%.

The cost of 8.2% stake in the share capital of Catoca Ltd Mining Co will be US$70 million. ALROSA is planning to purchase the share with its own funds. Catoca Ltd was established in 1992 and is engaged in diamond mining at Catoca deposit in Lunda Sul province. Catoca Ltd has two processing plants with the overall performance exceeding 10.0 million tons of ore per year. Every year Catoca Ltd mines and sells rough diamonds worth some 6.8 million carats. Its estimated reserves are 60 million carats.