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Catoca's 2012 Production -1%
Jun 18, 2013 7:59 AM
By Deena Taylor
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RAPAPORT... Production at the Catoca mine in Angola fell 1 percent year on year to 6.706 million carats in 2012. Rough diamond sales declined 5 percent year on year to $579.4 million, with the average price per carat down 4 percent to $86.22. Catoca’s profit decreased 7 percent to $131.7 million during the year.
Catoca’s general director, Jose Ganga Junior, noted that 2012 was 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 as well as slower growth in China and India.
The company added that despite the recent contraction in prices within the sector and the unfavorable conjuncture of Western countries, it is estimated that over the next few years the demand for rough diamonds will continue to grow at a considerable pace, exceeding supply, a situation which may contribute to inflate prices.
The company also noted positive developments in Angola's economy, which grew 7.4 percent during the year, as well as achievement in the country's social and political contexts marked by successful elections.
In 2012, Catoca shareholders included Angola’s state mining company, ENDIAMA, and Russian miner ALROSA, which each holding a 32.8 percent stake in the mine. Lev Leviev’s China-based LLI Holding owns 18 percent and the Brazilian company Odebrecht maintains a 16.4 percent stake.
Catoca sales represented 86 percent of Angola’s total rough diamond sales by volume and 64 percent by value.
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Tags:
Alrosa, Catoca, Deena Taylor, diamonds, ENDIAMA, Leviev, LLI, Odebrecht, Rapaport
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