Angola: Abandoning Diamond Firms Won’t Be Allowed Back

Mankenda Ambroise, Angola’s minister of geology and mining, said diamond companies that left Angola in the past year would not be welcome back. The statement, made to the AFP news agency, follows a decision by the Angolan government to subsidize salaries to prevent mass layoffs in the local diamond industry.

The country’s income from diamonds rose to $70 million a month from $25 million at the start of the year, according to Ambroise, adding that this took place despite a number of international companies pulling out of the country.

“We are beginning to see positive signs,” he said to AFP. “This crisis will pass and the Angolan government has taken steps to defend against it.”

The government supported the diamond industry by buying goods when prices dropped below production costs and by guaranteeing workers salaries at mines that have been temporarily closed to prevent mass unemployment.

Diamond production is expected to total nine million carats in 2009.

Alrosa, De Beers and LLD are the leading diamond miners in Angola, both shrinking their operations due to the global slowdown.

“Despite the crisis, production continues,” Ambroise said. “The problem is with the commercialization, but our doors are open for future buyers and we are calling on all those who have the money and the capacity to invest to do so.”