Multinational diamond mining firm De Beers has signed two mineral investment contracts with the Angolan government, which will pave the way for the company to start diamond exploration and production in north-eastern Angola over a period of 35 years.
The signing of the deals follows a 2021 application by De Beers to re-launch exploration activities in Angola – the world’s seventh largest rough diamonds producer – after the government reformed the sector, according to a press statement issued by the mining firm.
The reforms include Angola’s application to join the Extractive Industries Transparency Initiative which allows governments to report publicly on revenues from mining and oil, as part of international cooperation measures to oppose corruption in the sector.
Following its exit from the Angolan market in 2012, De Beers will now re-launch operations in partnership with state diamond company, Endiama, this year. De Beers will own a 90% stake in the joint venture, while Endiama will own a 10% share.
“The signing of these contracts represents an important milestone in our new partnership with Angola, which is based on a mutual desire to build a thriving diamond sector that delivers meaningful socio economic benefit for Angola’s citizens. Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country. Angola remains highly prospective and we look forward to being part of this next stage in the development of Angola’s diamond sector,” Bruce Cleaver, CEO, De Beers Group, said.
The development follows from Russia – the world’s biggest producer of diamonds – being sanctioned by the U.S and European countries over the Ukrainian invasion. As a result, the demand for diamonds is expected to increase with fewer suppliers – a situation that is already providing an opportunity for other diamond producing countries, such as Angola, to increase production and monetize mineral resources.
