Angola to Support Miners by Purchasing Diamonds

Angola will buy diamond from local mining companies to support the local industry, Bloomberg quoted Energy and Mining Minister Makenda Ambroise. According to Ambroise, the goal of the move is to “maintain companies’ liquidity so that they can pay salaries and services.”

The goods will be purchased at “acceptable market prices,” when international prices drop below production costs, Ambroise addedThe goods will be purchased by the government at “acceptable market prices,” when international prices drop below production costs, Ambroise added.

It is not clear which diamond miners are included in the plan, or if it includes small scale miners. Catoca, the largest diamond mine in the country announced that it expects profits in 2009 to fall 88 percent and sales to total $300 million.