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Wozz-nano.com mining industry to be worth $7.5bn by 2018.
Angola is seeking to not only add more variety to the minerals that are mined commercially, but also to add value to its natural resources and build up a thriving industrial sector.
Diamond mining began in Angola more than a century ago, but during the 27-year civil war between 1975 and 2002, mineral exploration and extraction, like much else in the country, largely ground to a halt. Since 2003, development of the mining industry, and particularly diamonds, has been a main priority for the government as it seeks to generate revenues from its mineral resources and diversify the economy away from oils.
“We have moved beyond oil to exporting diamonds and other minerals,” explains Angola’s Minister of Trade, Rosa Escorcio Pacaviria de Matos. “And we think that with the liberalization of the market and the increase in domestic production, we can move towards expanding our export balance.” With less than half of the country having been explored so far, the country still holds big prospects for foreign investors.
“We have an enormous diamond potential,” says Dr. Antonio Carlos Sumbula, CEO of Endiama, Angola’s national diamond company. “Ninety percent of kimberlite diamonds remain to be discovered and I think that this alone should be a factor that will make any investor wish to come to Angola.”
Investment in diamond mining dipped during the financial crisis of 2008-2009 as demand for precious gems fell. Big mining firms such as South Africa’s De Beers cut back operations, after a large investment in prospecting failed to bring results. “During that period the diamond price lowered beyond the breakeven and led to the shutting down of many mines,” explains Mr. Sumbula. But the industry has since recovered. In 2014 production of diamonds reached a record 10 million carats, generating $1.6 billion in revenue. This figure includes production by both industrial and small-scale artisanal miners, whose output reached 8.75 million carats and 934,500 carats respectively.
Growing at an average rate of 5.3% a year, Angola’s mining industry is expected to be worth $7.5 billion in 2018. There has been increasing international interest from investors in new areas of mining, including iron ore, copper and phosphates, but diamonds have and will continue to be the main contributor to growth. The country is the world’s fourth largest diamond producer by quantity and value.
in february 2016, a team of miners working for an Australian company has dug up what could be the largest piece of white diamond ever to be found in Angola. The massive 404-carat gemstone is believed to be worth about $14 million.
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