trending Market Intelligence /marketintelligence/en/news-insights/trending/n94psz0azmjqejtukq3iiw2 content esgSubNav
In This List

Angola's Catoca diamond mine lost US$464M due to underpricing

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Angola's Catoca diamond mine lost US$464M due to underpricing

Angola's largest diamond mine, Catoca, lost US$464 million over the past six years due to a government-imposed underpricing policy, Reuters reported June 11, citing a company presentation.

The mine, which is majority-owned by Angolan Endiama EP and Russian diamond miner PJSC Alrosa, said the policy obliged it to sell diamonds below international prices.

"The current marketing process, where diamonds are sold to 'preferential buyers,' destroys the value for the producer [less revenue] and the government [less tax]," according to the presentation, dated March 16. In addition, the document said that on average, Catoca's diamonds were sold for 24% below market prices over the past six years.

Reuters reported that the figure was initially presented at a private meeting in March between the diamond industry and the Angolan Minister for Natural Resources and Oil Diamantino Azevedo.

Catoca is the world's fifth-largest diamond mine.