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Catoca Mine's 2013 Production -2%
Sep 29, 2014 4:39 AM
By Deena Taylor
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RAPAPORT... Production at the Catoca mine in Angola fell 2 percent year on year to 6.556 million carats in 2013. Rough diamond sales in total increased 3 percent year on year to $594.4 million, however, the average price fell 4 percent to $89.68 per carat. Catoca’s profit decreased 24 percent to $100 million during the year as a result of reforms to Angola's tax system, coupled with legal requirements that call for payment in local currency.
"These measures have been somewhat affecting the company’s costs structure, since these additional costs are likely to fall or to be passed on to the final consumer," said Catoca’s general director, Jose Ganga Junior.
Ganga noted that 2013 was also a challenging year for the company as it tried to operate in an environment that was marked by diamond price fluctuation due to instability of the U.S. and European economies. In an effort to overcome these obstacles, the company increased its efforts during the year to meet pre-established production rates, improve its diamond selling prices and control the company's costs.
In 2013, Catoca's shareholders included Angola’s state mining company, ENDIAMA and Russian miner ALROSA, which each hold a 32.8 percent stake. China-based LLI Holding owns 18 percent and the Brazilian company Odebrecht maintains a 16.4 percent stake.
Catoca sales represented an estimated 70 percent of Angola’s total rough diamond sales in 2013 by volume.
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Tags:
Angola, Catoca, Deena Taylor, diamonds
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