Angola Approves De Beers Exploration Concession, Says Minister

(IDEX Online) – Angola will approve a new concession to De Beers to explore for diamonds, according to Geology and Mines Minister Francisco Queiroz.

De Beers relinquished its concession that it explored in Angola between 2005 and 2012.

"The company made that big investment in prospecting, and unfortunately it didn't have great results, but it is making a new bid, and another investment will be approved," Queiroz told the Reuters Africa Summit.

"De Beers has been negotiating with [state-owned diamond firm] Endiama, and it is welcome in Angola as it has been in the country for a long time, even before independence from Portugal in 1975," Queiroz said.

Angola is ranked sixth in the world in terms of diamond production by volume, and the government has made clear its eagerness to see foreign investors enter the country’s diamond sector.

De Beers’ main rival, Alrosa, operates the Catoca mine, the world's fourth-largest, in a joint venture with Endiama.

Queiroz said a new deal between Endiama and Alrosa, announced in February, to explore in eastern Angola could produce huge results, with the Russian miner to spend $15.5 million on rights and over $150 million if deposits are found.

"De Beers and Alrosa could help contribute to a boom in Angolan production in a short space of time."

Angola already plans to boost production to 9.5 million carats in 2014 from last year's 8.5 million.