Angola: Profit at Catoca diamond company expected to fall from US$104 million to US$12 million in 2009

11 March 2009

Luanda, Angola, 11 March – Sociedade Mineira de Catoca (SMC), which operates the fourth largest open face diamond mine in the world, in the Angolan province of Lunda Sul, expects to see net profit of less than US$12.8 million in 2009, newspaper Expansao reported in its latest edition.

According to Catoca, turnover is expected to total US$305 million, net sales US$281 million, operating costs are estimated at US$252 million and projected operating profit is of some US$21 million.

Taxes charged by the state are currently estimated at US$8.5 million as compared to a previous forecast of US$100 million.

The newspaper, which cited Catoca’s managing director, Ganga Junior, reported that in 2008 the company posted net profit of US$104 million, as compared to a projection of US$460 million.

The company owned by Angola’s Endiama, Russia’s Alrosa, Israel’s Lev Leviev and Brazil’s Odebrecht ended 2007 with gross sales of US$451 million.

Canga Junior said that the fall in revenues was “directly linked to the economic depression that has been felt since September 2008.”

Junior also said that if the current scenario remained unchanged, “of the 15 diamond producing companies only three or four will be able to survive and with many budgetary limitations.” (macauhub)