Party purchasing Russian Alrosa's stake in Angola's Catoca must not have ties to De Beers - Finance Ministry

MOSCOW. Oct 18 (Interfax) - Alrosa continues to seek a buyer for its stake in Angola's Sociedade Mineira de Catoca (Catoca) diamond mining company, Russian Deputy Finance Minister Alexei Moiseyev told reporters on the sidelines of the Moscow Financial Forum.

The buyer must not be affiliated with De Beers, which occupies a comparable share of the rough diamond market to Alrosa.

"The company [Alrosa] plans to leave [Angola] based on the position of the Angolan side. It is clear that the matter is sensitive. There will be an announcement once the deal has been signed," Moiseyev said.

"We are seeking a strategic partner. We need a partner who will develop the asset, pay a good price and is not affiliated with De Beers. This is the puzzle that needs to be solved," Moiseyev said.

Alrosa is selling its stake in Catoca owing to Angola's concerns regarding the prospects of collaborating with the Russian company under the sanctions.

Alrosa owns 41% of Sociedade Mineira de Catoca, having founded the diamond mining company jointly with Angola's Endiama state company. Catoca operates the world's fourth largest diamond mine by volume. Catoca produces around 6.5 million carats of rough diamonds per year, with reserves estimated at 120 million carats. Alrosa does not have a share in the Angolan company's sales, though does receive dividends from its stake in Catoca. The amount of dividends received totals around $464 million from the start of production in 1995 up to 2018.