Luanda, Angola, 18 May – Diamond mining at the Camutue mine, in Angola’s Lunda Norte province, will re-start by the end of the year, said Namakwa, the company responsible for operating the concession.
According to Namakwa, which was contracted by concession-holder Tecmad to run the mining project, the evaluation of reserves has already been concluded and a Bateman DMS ore processing unit set up, making it possible for operations to begin “in a relatively brief period.”
The area was discovered in 1958, and between 1961 and 1974 produced a total of 2.1 million cubic meters of ore, with an average of 9 carats of diamond per 100 tons.
For Namakwa, the agreement is “a low risk opportunity to boost techniques and experiences in the diamond industry, to gain a position in one of the richest regions in the world, and to establish a long term relationship with Tecmad, one of the key players in the diamond and mining industry in Angola.”
It is, the company added, and operation, “with potential to generate cash flow in the short term and, in the long term, position Namakwa to ensure attractive additional opportunities in the very important production area.”
Under the terms of the agreement, the Dutch-owned company will receive management commission of 20 percent of net cash flow of the mine operating company, and a minimum of US$100,000 per month, or US$1.2 million per year from the start of production.
Tecmad will have the right to a majority share of profit in the concession operating profits, through a partnership with Angolan state diamond company Endiama, the conditions of which have not been published.
The concession-holder will also be responsible for paying all operating and capital expenses, under the terms of the agreement, which is valid for a year, but renewable.
The Camutue project is located some 10 kilometers to the East of the city of Lucapa, in Lunda Norte province in northwest Angola. (macauhub)