Angola's Catoca Mine Says State Sales Rules Cost Millions in Revenue

Angola produced 15.2 million carats of diamonds valued at $1.81 billion in 2025, ranking behind only Russia and Botswana globally. While state officials push to expand cutting, polishing, and local jewelry manufacturing, the country’s dominant diamond mine estimates that historical marketing rules have cost it hundreds of millions in lost revenue.

Reforming the Diamond Marketing System

Yet for years, the economic returns from that extraction faced severe constraints under state-mandated sales channels. All rough stones mined in the country must pass through the state-owned diamond trading company Sodiam, which then directs the supply to buyers of its choosing.

During a private meeting in March between the diamond industry and Minister for Natural Resources and Oil Diamantino Azevedo, executives from the Catoca diamond mine revealed that government-mandated sales obligations had forced them to unload production below fair international market value over the past six years.

Industry sources with direct knowledge of the arrangement told reporters that under the previous administration of José Eduardo dos Santos, these select purchasers—often referred to as preferential buyers—frequently maintained political connections that allowed them to acquire stones below market rates.

According to the presentation reviewed by Reuters, diamonds originating from the Catoca deposit sold for an average of 24 percent below international market prices across the six years leading up to and including 2017. A spokesperson for the Ministry of Natural Resources and Oil confirmed that the presentation occurred, noting that the minister declared the necessity to find a more balanced model in which everyone wins and the producers are not the most impaired.

Global Standing and Production Figures

In 2025, the country yielded 15.2 million carats, generating $1.81 billion in total value. Only Russia, which produced 31.5 million carats, and Botswana, with 15.5 million carats, exceeded those totals.

By volume, Angola accounted for 15 percent of global diamond production, while capturing 20 percent by value. Despite those massive volumes, Angolan stones historically lacked the distinct brand recognition enjoyed by diamonds originating from Canada or Botswana.

Top Diamond Producer	2025 Volume (Carats)	Global Volume Share	Global Value Share
Russia	31.5 million	Not specified	Not specified
Botswana	15.5 million	Not specified	Not specified
Angola	15.2 million	15 percent	20 percent

Ownership of the Catoca mine itself is divided among international and domestic entities. Russia’s Alrosa and Angola’s state-run Endiama each hold a 41 percent stake in the operation, which accounts for three quarters of all diamond production in Angola. LL International Holding B.V. owns the remaining 18 percent.

Diversifying Beyond Raw Extraction

President João Lourenço has pursued a sustained campaign to overhaul the nation’s historically secretive mining sector since taking power. During a visit to the Belgian diamond trading hub of Antwerp, Lourenço signaled that the government would soon unveil a new business framework for the sector designed to attract fresh foreign investment and restructure sales mechanisms.

Elton Escrivão, commercial director for state-run Endiama, noted that the country has spent the past decade enacting regulatory overhauls to rebuild investor confidence. Those policy adjustments successfully lured major international miners back into the region.

Rio Tinto is currently engaged in advanced exploration work close to starting production, while De Beers operates at an earlier exploration stage with encouraging initial results. State officials attribute this renewed corporate interest directly to reforms and improvements that created a better business environment.

Building a Domestic Cutting and Polishing Industry

Moving past pure raw extraction, the Angolan government aims to capture a greater share of the diamond value chain through domestic manufacturing. The country inaugurated a dedicated diamond hub in 2021 to generate employment and draw specialized investors.

That infrastructure investment currently supports nine to 10 active cutting and polishing facilities within the country. Local employment within these manufacturing plants remains high, with the average percentage of local workers hovering around 75 to 77 percent.

The ultimate strategic vision involves finished jewelry appearing on international markets crafted entirely inside Angola by local artisans, utilizing stones mined, cut, and polished domestically. To signal this shift, Angola made its debut appearance at the JCK Las Vegas show, hosting a panel discussion under the banner of Angola’s Diamond Potential and exhibiting multiple local producers together in the Natural Diamonds section.

“There are still a lot of misconceptions about Angola. That’s why we always say, don’t judge Angola from distance, just come and visit us and see.”

Elton Escrivão, commercial director for Endiama

Security and Economic Stability After Decades of Conflict

The path toward a transparent mineral economy is deeply tied to the nation’s political history. Angola endured a colonial period under Portuguese rule via the Diamang company before gaining independence in 1975, which was immediately followed by a civil war that persisted until 2002.

Decades of internal conflict left the country’s mineral wealth largely underexplored. Following the cessation of hostilities, the government established rigorous oversight mechanisms to ensure mineral revenues cannot be diverted toward illegal armed groups.

Endiama officials emphasize that strict traceability protocols have successfully safeguarded the peace for 24 years, ensuring that natural resources remain entirely detached from conflict financing as the country positions itself as an influential economic anchor in the region.