Diamond production in Angola may increase to previous levels due to the new Mining Law and mining of higher quality stones, according to a recent analysis.
Analysts from geological consultancy Sinese and investment bank Eaglestone Asset Management expect growth in the Asian luxury goods market to boost diamond production in Angola.
“Angola has both kimberlitic and alluvial diamonds, deposits which mostly have yet to be explored,” said the report cited by the trade press.
Since 2006 diamond production in Angola has remained stable at around 8 million carats (each carat is the equivalent of around 200 milligrams) per year but after the new Mining Law came into effect in 2011, there has been renewed interest in mining in the country.
“The Angolan government has made efforts to simplify the Mining Law and plans to use its oil wealth to diversify the economy and improve infrastructure. Mining activities and diamond mining should benefit from this process as repairing the road network will help to boost the sector’s productivity,” according to Manuel Reis, an analyst from Eaglestone.
Over the last five years, although production from the Catoca mine, the fourth largest in the world, has remained stable, the impact of the 2008 financial crisis led to a drop in production and to some international groups setting aside their mining operations. (macauhub)