Alrosa Posts $70 Million Profit at Angolan Diamond Mine

Alrosa, Russia's largest diamond company, has posted a profit of $70 million for its Catoca diamond mine located in Angola. The mine situated near the town of Saurimo in north east Angola sold about 7 million carats of gems earning a gross production value of $122.6 million.

Other partners of the mine with Alrosa include Endiama, Angola's state-owned diamond company, Brazil's Odebrecht SA and Israel's Daumonty Finance Co. The Catoca mine accounts for 70% of Angola's total diamond sales.

The diamond market had also felt the effects of the global economic crisis in 2009 and Angola had seen its net profit fall to $70 million from $93.3 million in 2008. With the diamond market looking up in 2010 the company spokesman said that they hope that this year will be better than the last.

The Russian state owned firm Alrosa is part of the Sociedade Mineira de Catoca which operates the fourth largest diamond mine in the world. The kimberlite mine in Angola contributes significantly to its reputation as the fourth largest diamond producer in Africa.