Angola wants to stabilise the price of diamonds

18 February 2016

Angolan national diamond company Endiama plans to negotiate with the world’s largest producers to reduce the quantity of diamonds they sell in order to make room for the expected increase in Angolan output, the chairman of the state company said in Luanda.

Sumbula after announcing that Angola’s production is expected to reach 8 million carats in five years, with the exploration of the Luachi kimberlite, said that this increase will force a negotiation with the other producers to circumvent the increased supply of the product and, consequently, a decrease in prices.

“So that doesn’t happen, we have started to contact many world producers, to establish a balance in which we will provide only eight million carats year, which more or less corresponds to a gross amount of US$1.2 billion,” said the chairman of Angolan state diamond company, cited by Portuguese news agency Lusa.

Sumbula also said that the negotiation would also involve getting the other major producers to cut down slightly on the quantity of diamonds they sell, “so that we can sell the planned production of 8 million carats per year.”

Sumbula stressed that the Luachi mine, in the Angolan province of Lunda Sul, may be at least the third largest kimberlite in the world, and bigger than the Catoca mine, which is the fourth largest, and urged investors to join this exploration project. (macauhub/AO)