LUANDA - Angola's Catoca mine said the diamond market had picked up after posting a smaller-than-expected fall in 2009 net profit.

Catoca, which accounts for over 70 percent of Angola's total diamond sales, said its 2009 net profit fell to $70 million, down from $93.3 million the previous year but almost three times higher than the company had expected.

A sharp drop in diamond prices last year as the financial crisis meant people bought fewer of the precious gems prompted Catoca to turn to the Angolan government for financial aid.

But Catoca spokesman said on Thursday the company no longer needed government help.

"Right now we do not need any help from the government," said the spokesman. "The diamond market is finally picking up and hopefully this year will be much better than 2009."

Catoca sold 7.1 million carats of diamonds last year, up from 6.3 million in 2008, at an average price of $62.23 per carat, versus $78 per carat the previous year.

The kimberlite mine is owned by Angolan state-owned diamond firm Endiama and Russian state-owned firm Alrosa, each with a 32.8 percent stake, while Brazilian building firm Odebrecht owns 16.4 percent and LU Holding BV has the remaining 18 percent.

Angola is Africa's fourth-biggest diamond producer after Botswana, the Democratic Republic of Congo and South Africa, according to the U.S. Geological Survey.