ST. PETERSBURG, June 5 (RIA Novosti) - Russia's largest diamond miner Alrosa could withdraw from an Angolan joint venture, LUO-Kamachia-Kamajiku, due to financial difficulties, the company's CEO said on Friday.
Sergei Vybornov said the joint venture's work efficiency is "at zero."
Alrosa is currently involved in two joint projects in Angola - Catoca Ltd and LUO-Kamachia-Kamajiku. It owns 32.8 % and 45%, respectively, in the companies.
According to a feasibility study, the second leg of the LUO-Kamachia-Kamajik diamond mining project could be developed to process 3 million metric tons of ore per year. The joint venture would eventually have annual output of 4 million metric tons.
Vybornov said the company planned to close deals on selling its non-core hydrocarbon assets in mid-June and July, respectively.
He also said the company expected to keep the volume of diamond sales at the 2008 level despite a slight price decline on the world market.
"Since March we have seen an upward trend. We have moved to long-term contracts and are selling at a high but fixed price," Vybornov said adding, that the company has no plans to seek foreign loans this year.
Under a plan adopted in April, Alrosa expects its diamond output this year to total $1.87 billion.
