Alrosa might invest up to $500 mln in new Angolan JV - FT
MOSCOW. June 17 (Interfax) - Russia's diamond monopoly Alrosa may invest up to $500 million in a new joint venture with Angola's Endiama E.P., the Financial Times reported with reference to Alrosa's chief Fyodor Andreyev.
The two companies are to sign a memorandum of understanding next week, with Alrosa initially investing an estimated $10-$20 million in the exploration project, the FT reported.
Alrosa is considering forming similar joint ventures in Botswana and Zimbabwe, depending on the political situation.
The prospects for establishing a joint venture in Angola were discussed during an April meeting between Andreyev and Angolan President Jose Eduardo dos Santos, as well as with Geology and Mining Minister Francisco de Queiros, the management of Endiama E.P. and mining company Catoca. Alrosa considers African diamond production assets to be the most promising area for development in the international arena.
Besides Alrosa, the Alrosa Group comprises Alrosa-Nyurba , OJSC Almazy Anabara (Diamonds of Anabar), Severalmaz and 32.8% of Angola's Catoca.
The Russian government owns 50.92% of Alrosa's shares through the Federal Property Agency (Rosimushchestvo), the Property Relations Ministry of Yakutia owns 32%, and the eight ulus of Yakutia hold a total of 8%. Free float is 9.07% of shares, over 2% of which belong to Alrosa subsidiaries. Among the diamond monopoly's major minority shareholders is Suleyman Kerimov's Nafta Moskva, which, according to media reports, acquired 1% of Alrosa shares at the end of last year. Alrosa's management controls 0.18% of shares, including 0.11% belonging to Andreyev and 0.05% to Vice President Sergei Pushkin.
