ALROSA "Not Wasting Time" in Angola, To Invest $500-700 Million

Mining and Exploration
29/05/2018 13:06

ALROSA, jointly with Endiama, is planning to invest about $500-700 million in Luaxe mining project in Angola, accoring to Russian news agency TASS as reported by Rough&Polished. Last year, ALROSA increased its shareholding in Catoca mining to 41%, ensuring a stronger role in the development of the Luaxe pipe in close proximity to Catoca's infrastructure. Luaxe has a reported reserve of some 350-million carats in the Luele Kimberlite pipe. The operation is projected to have a life-of-mine of 29 years, cover a surface area of 100 ha and reach a depth of 400 m. Catoca owns 50.5% of Luaxe International Enterprise.

The lastest annoucement makes it clear that ALROSA is planning to ramp up its activities in Angola. “A preliminary estimate shows that the investments will be from $500 mn to $700 mn depending on the number of ore processing plants and the period of their commissioning. We don’t waste time, we are working to boost infrastructure, building field camps, continue stripping. That is why the economy here is functioning very well,” the agency quoted ALROSA’s CEO Sergey Ivanov as saying. Angolan president Joao Lourenço, who is actively working towards increasing mining revenue, will be leaning heavily on Russian firm ALROSA over the coming months, confirms Africa Mining Intelligence. Controlled by Russia and the Sakha Republic, Alrosa is planning to start up production at the Angolan Luaxe diamond mine this year. The mine, which Alrosa operates alongside local firm sociedade mineira de Catoca, is expected to produce 10 million carats per year which would double Angola’s current output.