Endiama predicts USD 1.3 billion contribution to general budget

  • Diamonds from Angola
Luanda - Angolan National Diamond Company (Endima EP) foresees subsector’s contributions of USD 398.6 million to General State Budget (OGE) until 2022, should it reaches the production of 14 to 20 million carats /year.

This was during a seminar on the Diamond Sector, Resilience, Sustainability and Fiscal Perspectives ”, an initiative of the Ministry of Finance, through its branch based in Province of Lunda Sul,

Speaking at the meeting, the Endiama CEO, Ganga Júnior, highlighted the projected projects which may contribute to the increase in production and the value of the aforementioned revenues by 2022.

In 2018 the contribution of this subsector to OGE was USD 252.2 million and in 2019 it increased at USD 328.2 million.

The projection and production of kimberlite in Angola went from 8.973 million carats, in 2017; 9.216 million carats, in 2018; 9.086 million carats in 2019 and 8. 310 million expected by the end of this year.

Of the more than eight million carats produced until the end of September, the subsector, which saw its production capacity reduced to 20% due to Covid-19, recorded a production of around 5.890 million carats of diamonds, of which approximately three million in stocks.

Diamonds in stocks were approximately three million carats. The numbers reduced by about two million until the last three weeks of September, with the sale of one million carats.

The closure of some of the main financial markets between March and April of this year, especially Belgium (Europe) and the Indian market, where 90% of Angola's diamond production is cut, are at the base of the high amount of diamonds in stocks.

Despite the fluctuations in production and sales on the international market, the diamond sector is working to reach the rank of third largest producer in the world of diamonds, after Alsora and De Berres, with a production in the order of 30 million carats per year .

Among other ongoing efforts, he added, advanced contacts in terms of negotiation were made to bring the main mining companies, De Beers and Rio Tinto to the Angolan market.

The diamond subsector currently has 25 projects in kimberlite projection (17 secondary and 08 primary) and 13 in production (03 primary and 10 secondary), which together has 11, 762 jobs.

Work is underway to increase production levels, with Luaxe projects at an advanced stage, with an exploration area of ​​1,195 square kilometers (Lunda Sul), Lulo with three thousand (Lunda Norte), among other regions of the country .

With the old and new mines in the pipeline, in the near future, the sector estimates a production between 14 million and 20 million carats per year, being one of the main challenges identified.

In addition to the 17 controlled alluvial projects, the sector has nine others whose negotiations are well advanced, for the provinces of Lunda Norte, Lunda Sul, Malanje and Bié, which will contribute to the increase of the current production capacity, according to Ganga Júnior.

Endiama ceased to exercise the functions of national diamond concessionaire, within the framework of the creation of the National Agency for Mineral Resources, approved this year by the Executive.

With the creation of this agency, Endiama focuses on becoming the reference mining operator in the diamond sector, having already prepared a strategic plan.

Making the company a corporation as well as its privatisation in the capital market, disposing of non-nuclear businesses, are among other actions on the agenda.

 

This was during a seminar on the Diamond Sector, Resilience, Sustainability and Fiscal Perspectives ”, an initiative of the Ministry of Finance, through its branch based in Province of Lunda Sul,

Speaking at the meeting, the Endiama CEO, Ganga Júnior, highlighted the projected projects which may contribute to the increase in production and the value of the aforementioned revenues by 2022.

In 2018 the contribution of this subsector to OGE was USD 252.2 million and in 2019 it increased at USD 328.2 million.

The projection and production of kimberlite in Angola went from 8.973 million carats, in 2017; 9.216 million carats, in 2018; 9.086 million carats in 2019 and 8. 310 million expected by the end of this year.

Of the more than eight million carats produced until the end of September, the subsector, which saw its production capacity reduced to 20% due to Covid-19, recorded a production of around 5.890 million carats of diamonds, of which approximately three million in stocks.

Diamonds in stocks were approximately three million carats. The numbers reduced by about two million until the last three weeks of September, with the sale of one million carats.

The closure of some of the main financial markets between March and April of this year, especially Belgium (Europe) and the Indian market, where 90% of Angola's diamond production is cut, are at the base of the high amount of diamonds in stocks.

Despite the fluctuations in production and sales on the international market, the diamond sector is working to reach the rank of third largest producer in the world of diamonds, after Alsora and De Berres, with a production in the order of 30 million carats per year .

Among other ongoing efforts, he added, advanced contacts in terms of negotiation were made to bring the main mining companies, De Beers and Rio Tinto to the Angolan market.

The diamond subsector currently has 25 projects in kimberlite projection (17 secondary and 08 primary) and 13 in production (03 primary and 10 secondary), which together has 11, 762 jobs.

Work is underway to increase production levels, with Luaxe projects at an advanced stage, with an exploration area of ​​1,195 square kilometers (Lunda Sul), Lulo with three thousand (Lunda Norte), among other regions of the country .

With the old and new mines in the pipeline, in the near future, the sector estimates a production between 14 million and 20 million carats per year, being one of the main challenges identified.

In addition to the 17 controlled alluvial projects, the sector has nine others whose negotiations are well advanced, for the provinces of Lunda Norte, Lunda Sul, Malanje and Bié, which will contribute to the increase of the current production capacity, according to Ganga Júnior.

Endiama ceased to exercise the functions of national diamond concessionaire, within the framework of the creation of the National Agency for Mineral Resources, approved this year by the Executive.

With the creation of this agency, Endiama focuses on becoming the reference mining operator in the diamond sector, having already prepared a strategic plan.

Making the company a corporation as well as its privatisation in the capital market, disposing of non-nuclear businesses, are among other actions on the agenda.