Sociedade Mineira de Catoca reduces contribution to tax revenues in Angola in 2019

12 December 2019

Angolan mining company Sociedade Mineira de Catoca is expected this year to contribute US$90 million to tax revenues in Angola, a drop of 58% compared to US$217 million recorded in 2018, according to a statement issued by the company, which is the largest operating in the country’s diamond sector.

The document issued at the end of the 2nd Extended Board Meeting said that the company’s turnover is expected to end the year at nearly US$700 million, which is less than the figure for 2018, but has not been provided in detail.

The drop in turnover this year was explained by the company directors as being due to fall in diamond prices on international markets, in the order of 26%, since October 2018.

The statement added that the figures achieved are higher than initial forecasts, as the drop in prices was offset by an increase in production.

“In addition to the increase of production, there was a considerable reduction of production costs achieved, contrary to natural law, according to which the greater the depth of mine the higher the production costs,” said the statement.

Sociedade Mineira de Catoca’s shareholders are Empresa Nacional de Prospecção, Exploração, Lapidação & Comercialização de Diamantes de Angola (Endiama) and Russian group Alrosa, with equal shares of 41%, with the remaining 18% held by Lev Leviev International Holding B.V.

With headquarters in the municipality of Saurimo, province of Lunda Sul, the company is the world’s fourth largest diamond producer and the Angolan leader with a market share of 86.3% in volume and 60.3% in value. (macauhub)