Angolan company, Endiama launches new diamond project in Lunda Norte province

29 July 2010

Luanda, Angola, 29 July – Angolan national diamond company Endiama has launched a new mining project in Nzagi, Cambulo municipality, in Angola’s Lunda Norte province, the company’s chairman, António Sambula said.

According to Angolan news agency Angop the Luxinge diamond project, which is 90 percent Angolan-owned, will initially produce 3,000 carats of diamonds per month and is estimated to cost US$13 million.

The diamond mine, which covers an area of 160 square kilometres, in the Luxinge, Tchimbongo, Kambondo and Kamanhina rivers, in this first phase will employ 110 people.

Angolan companies Compesa Angola, Shefield, and Syntechron Triade have also invested in the project along with Sweden’s International Gold Exploraion (IGE).

The Nzagi project covers a small area compared to those that are already set up in Lunda Norte and Lunda sul provinces, which have around a million carats of potential.

This project is however symbolically important given that the Angolan diamond industry is now emerging from a crisis, which began in 2008 with the world economic and financial crisis that lowered diamond prices to a point where it was no longer worthwhile to continue mining them.

During the crisis, the main mines, such as Lucapa in Lunda Sul, were closed and Russian group Alrosa gave up mining in Angola. (macauhub)