Angolan government approves new model for buying and selling diamonds

7 September 2006

Luanda, Angola, 07 Sept – The Angolan government Wednesday approved a new model for the buying and selling of diamonds and the plan for sale to preferential customers, as part of the new sector policy approved in May, officials said.

The model approved by the Permanent Commission of the Council of Ministers aims to provide the government with a legal framework with which to regulate contracts drawn up by Angolan diamond sales company, Sodiam.

The new model follows the new diamond sales policy approved at the beginning of May, which sets out that the purchase and sale of diamonds in Luanda be carried out in the Sodiam sales rooms and that diamond sales outside be carried out through the Sodiam Trading Centers.

The new diamond sales policy was approved by the government some six months after the first diamond cutting factory was opened in Angola, thus allowing Angola to export cut diamonds as well as diamonds in the rough.

Official estimates show that, for every US$9 million of rough diamonds exported by Angola, foreign buyers, after cutting the stones, sell them on for US$56 million.

Diamond production in Angola totaled over 6 million carats in 2005, with Angola’s state diamond company Endiama estimating it will reach 10 million carats at the end of this year and 19 million in 2009.

Angola is currently the sixth-largest diamond producer in the world, but, due to the quality of its stones, is the fourth in terms of revenue from diamond mining. (macauhub)