Odebrecht Group raises US$140 million from sale of stake in diamond mine in Angola

17 January 2018

Brazilian group Odebrecht will make US$140 million by selling its 16.4% stake in diamond mining company Sociedade Mineira da Catoca (CMC), which operates the fourth largest open-pit diamond mine in the world in eastern Angola, according to with a statement released by Russian group Alrosa PJSC.

The deal, signed-off this month by the Angolan President, João Lourenço, will be concluded in February/March, after which SMC will be divided into two stakes of 41% owned by Alrosa and Angolan state-owned diamond company Endiama (Endiama) and an 18% stake for LL International Holding BV

The Odebrecht group’s stake, held by its subsidiary Odebrecht Mining Service Investments GmbH, was initially sold to Wargan Holdings Limited, a company whose capital is 100% held by Alrosa PJSC, to be further divided equally into two stakes of 8.2% with Endiama.

SMC, located in the municipality of Saurimo, Lunda Sul province, is the fourth largest producer of diamonds in the world, with a share of 86.3% by volume and 60.3% by value. (macauhub)