Angola’s diamond industry is becoming even more attractive, with legislative reforms, the discovery of high-quality deposits and a forward-looking approach by government making a strong case for foreign investment. The Ministry of Mineral Resources, Oil and Gas is actively engaging regional and global partners to enhance output and position Angola as a hub for diamond production.
Sectoral Reforms Entice Investors
Angola is the fourth largest diamond producer in Africa and the sixth globally, with production reaching 9.8 million carats in 2023. In 2024, the country expects to produce up to 14.6 million carats – a goal which can only be achieved through increased foreign investment.
Rogerio Guimaraes, Director of Geology at Angola’s state-owned mining company ENDIAMA, told an audience in Cape Town that, “the mining sector in Angola has undergone significant changes over the last five years with the goal of bringing investors into the country.”
Reforms include the establishment of the National Agency for Mineral Resources – an independent mineral regulatory agency created in 2020 –; new capital investment and repatriation policies; new diamond marketing policies; and improved fiscal terms.
Speaking in Cape Town, Eugenio Bravo da Rosa, CEO of Angola’s national diamond trading company Sodiam, explained that, “Before the approval of the [new] tax incentives, investors who established factories had to pay 3.5% for the rough diamond polished locally. Now, they only pay 2.25%. If they want to export, they can export for a tax of 3.5% whereas before they used to pay 5.6%.”
This push by government to restructure the sector has already yielded positive results, with Angola’s mining industry offering numerous benefits for investors. According to Guimaraes, these include a stable political and social environment; attractive investment legislation; a market-focused diamond marketing and sales policy; strong geological potential; capital repatriation guarantee; and high-quality diamonds.
Additionally, the government has “available data and information, which can be shared with potential investors.” The data not only improves the understanding of the Angolan mining sector but makes it easier for companies to invest.
Angola’s Bright Diamond Future
Developments across the market highlight the growing interest in Angola’s diamond industry and the success of regulatory overhaul. Diamond company De Beers signed an MoU with various Angolan mining companies in February 2024, outlining the way forward for diamond exploration and production. De Beers is focused on Angola, the company’s Senior Exploration Manager Mike Roberts said in Cape Town this week.
The agreement builds on milestones achieved in the country in 2023, including the discovery of the second largest diamond ever unearthed at the Lulo Mine – a 235 carat type IIa diamond – and the launch of Tech-Minas – an earth observation tool used to map diamond-related activities. On the production front, Angola started operations at the country’s largest diamond mine – the 600 meter-deep Luele Mine – in November 2023. The project is expected to yield 628 million carats over a 60-year lifespan with annual production of six million carats.
AOG 2024: Bringing Diamond Producers to Angola
Angola’s premier oil and gas event – the Angola Oil & gas (AOG) conference – is a strategic platform where global diamond companies can be introduced to Angolan opportunities. Centered on attracting new investment into the country, the event’s diverse offerings allow potential E&P firms to showcase technology, expertise and ambitions. At the same time, the event enables the Angolan government – in collaboration with state-owned diamond firms – to provide insight into upcoming opportunities while Angolan service providers and manufacturers connect with projects. AOG 2024 is a platform to do business and will bring Angolan oil, gas and minerals to a global consumer base.
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