ALROSA and Endiama E.P. to Jointly Initiate Improvements in Catoca’s Corporate Governance
ALROSA, which is a major founding shareholder, along with Angolan national company Endiama E. P. (another significant stakeholder) of Catoca Ltd Mining Co, announced that the two partner companies will jointly “introduce innovations that significantly improve the quality of corporate governance” at Catoca.
"We are pleased to state that our cooperation with Endiama, the second major founding shareholder of Catoca, is reaching a new level of development,” said Sergey Ivanov, ALROSA’s CEO. “Since last year, ALROSA and Endiama have been discussing opportunities to improve corporate governance at Catoca Ltd. After detailed consideration and elaboration, shareholders unanimously adopted all the proposed innovations at the recent General meeting. This indicates a uniting desire to develop the company and contribute to the strengthening of the Angola economy.”
The founding shareholders of Catoca took the decision to establish Supervisory and Fiscal councils. “These bodies are vested with the authority to control, approve and finalise contracts,” said ALROSA elaborating on the proposed move. “The Supervisory Board also has the right to approve Executive Directors.”
Another important decision taken was that, going forward, Catoca Ltd. will follow the principle of rotation between the two main shareholders in the appointment of its CEO and his Deputy for financial affairs. “The Supervisory Board and the management Board of Catoca will observe the principle of parity representation,” ALROSA explained.
During a visit to Angola, Ivanov said: "Catoca will conduct its operations in accordance with the best and internationally recognised corporate governance practices. This will definitely improve the quality of work on current and future projects, including the Luaxe project, (and) will make it more transparent and efficient.”
The ALROSA delegation, including its CEO Sergey Ivanov and Deputy CEO Vladimir Marchenko, also visited the Lunda Sul province, where the main diamond deposits of the country are located. They held a meeting with the Province’s Governor, Daniel Neto. “During the visit, participants discussed the status of the development of Luaxe and prospects of potential cooperation with Endiama, including the context of other concessions,” ALROSA divulged.