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.
