Diamond miner PJSC Alrosa has announced that it will participate in development of a new diamond deposit in Angola.
Alrosa president Sergey Ivanov and Angola national diamond company Endiama president Antonio Carlos Sumbula signed constituent documents to establish Luaxe international enterprise in Luanda, Angola.
Endiama and Alrosa signed memorandum of understanding, Luaxe international investment contract and notarial record of the establishment of Luaxe enterprise.
Agreements were signed as part of a visit of the Russia's official delegation to Angola, headed by Russian Deputy Prime Minister Yury Trutnev.
Russian Deputy Prime Minister outlined that cooperation in diamond mining, in particular between Alrosa and Endiama, is a major aspect of economic cooperation between the two countries.
Trutnev also pointed out that development of new projects, active exploration and search for new deposits have positive impact on the economic advancement of Angola and partnership of two countries.
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In 2013, a kimberlite pipe called Luele was discovered in the Luaxe concession area when exploration operations were carried out by Alrosa in cooperation with Angolan experts.
Trutnev said: “Over the past few years, Alrosa, acting with the support of the Russian Government, has been engaged in negotiations with Angolan top management and investors. Consent to sign a mining investment agreement for exploration and assessment of the deposit, as well as for signing a contract between founders of a company for the development of Luele deposit was obtained as a result of negotiations.”
Alrosa will be involved in the project through Catoca, which it owns a 32.8% stake in.
In the new entity, Alrosa will obtain a 50.5% share. It also plans to submit a proposal to the company's supervisory board to purchase directly another 8% in Luaxe. Alrosa has also plans to boost its stake in Catoca Ltd Mining Co.
Given the size of the ore body and preliminary exploration data, the development of Luele is expected to be of economic interest for project participants.
Ivanov said: "Luele pipe is the largest of all those discovered worldwide over the past 60 years since the discovery of deposits in Yakutia. As a specialised investor in Luaxe project, Alrosa, who has relevant professional competence, will assume obligations for the new company’s project solutions and technical policy. The total commercial value of the deposit is assessed as over $35bn."