Angola: Swedish company granted diamond mining concession

7 November 2007

Stockholm, Sweden, 7 Nov – Swedish company International Gold Exploration (IGE) said Tuesday in Stockholm that it ad been granted three diamond mining licenses in the Angolan provinces of Lunda Norte and Cuanza Sul, where it plans to invest US$50 million over the next few years.

According to the statement on the company’s website, the Luxinge project, in Lunda Norte, could produce 120,000 carats of diamonds per year.

The Nhefo projects, in the same project, is also expected to produce 120,000 tons per year, but over a six year period.

IGE noted that Lunda Norte province is “the richest in diamonds” of the whole country, and that Cuanza Sul “has the third most important primary reserves” in Angola.

Between 2002 and 2006 production almost doubled – from five million carats to 9.5 million – whilst gross revenue from diamond sales rose to US$1.2 billion last year.

In 2000, its was calculated that alluvial diamond reserves in Angola totaled around 40 million carats, but now most observers consider this to be a conservative estimate.

IGE is a Swedish mining group with interests in Sweden, Norway, Angola and Burundi. (macauhub)