Diamonds: Endiama records loss of two million carats

  • Diamonds from Angola
Luanda - The State-owned Angolan Diamonds Company (Endiama) recorded a global loss of two million carats of diamonds in 2020, due to the Covid-19 pandemic, a disease that has been hitting the world economy since December 2019.

This loss represents a total of US $400 million on what was scheduled to be produced which is US $1.4 billion.

 

According to the chairman of the company's board of directors, José Manuel Ganga Júnior, “there were no more losses because the industry has been working more and more with the recovery dynamics since 2020”.

 

José Ganga Júnior stressed, during the public television (TPA)'s programme “Grande Entrevista (Great Interview)” that the strategy involved not stopping production, but only reducing staff, taking into account the restrictions that had been imposed due to the pandemic.

 

REAL SITUATION OF ORE PRODUCTION

In 2020, the sector forecast a production of 10 million carats of diamonds, but only 7.5 million carats were produced.

 

As for the sale of this ore, the second most exported in the country, it passes through Sodiam, a unique channel for its commercialization.

 

The sector is structured to produce, on average, one billion  diamonds per year, although it is still considered virgin, as it is little explored.

 

Most investments in the sector, according to Endiama´s board chairman, are mostly of foreign.

 

Even so, said the manager, Angola may become the third largest diamond producer in the world, judging by the existing dynamics, as well as the potential in provinces such as Malanje and Uige, in addition to several others.

 

 

DIAGNOSIS OF THE COUNTRY'S DIAMOND POTENTIAL

 

Project Catoca remains the most profitable and emblematic project, considering that it produces 80% of the diamonds mined in the country, due to the organization, structure, and technical means.

 

Currently, there are 260 diamond exploration cooperatives against the 750 artisanal diamond exploration cooperatives in 2017. José Ganga Júnior also advanced, on the occasion, that diamond mining or artisanal production will disappear or be extinct in two years.

 

"Each project is a project, but whoever does not work as required by the rules will be extinguished. We have companies that have existed for more than 10 years, however they have not delivered any value to Endiama", said the manager.

 

On the other hand, the manager affirmed that it is essential that the activity of the sector brings wealth or minimizes the issues of poverty, mainly in the areas or regions where this natural resource is exploited.

 

"We are concerned about the levels of poverty in the regions where diamonds are explored," said the official, who has worked in the sector for decades.

 

This loss represents a total of US $400 million on what was scheduled to be produced which is US $1.4 billion.

 

According to the chairman of the company's board of directors, José Manuel Ganga Júnior, “there were no more losses because the industry has been working more and more with the recovery dynamics since 2020”.

 

José Ganga Júnior stressed, during the public television (TPA)'s programme “Grande Entrevista (Great Interview)” that the strategy involved not stopping production, but only reducing staff, taking into account the restrictions that had been imposed due to the pandemic.

 

REAL SITUATION OF ORE PRODUCTION

In 2020, the sector forecast a production of 10 million carats of diamonds, but only 7.5 million carats were produced.

 

As for the sale of this ore, the second most exported in the country, it passes through Sodiam, a unique channel for its commercialization.

 

The sector is structured to produce, on average, one billion  diamonds per year, although it is still considered virgin, as it is little explored.

 

Most investments in the sector, according to Endiama´s board chairman, are mostly of foreign.

 

Even so, said the manager, Angola may become the third largest diamond producer in the world, judging by the existing dynamics, as well as the potential in provinces such as Malanje and Uige, in addition to several others.

 

 

DIAGNOSIS OF THE COUNTRY'S DIAMOND POTENTIAL

 

Project Catoca remains the most profitable and emblematic project, considering that it produces 80% of the diamonds mined in the country, due to the organization, structure, and technical means.

 

Currently, there are 260 diamond exploration cooperatives against the 750 artisanal diamond exploration cooperatives in 2017. José Ganga Júnior also advanced, on the occasion, that diamond mining or artisanal production will disappear or be extinct in two years.

 

"Each project is a project, but whoever does not work as required by the rules will be extinguished. We have companies that have existed for more than 10 years, however they have not delivered any value to Endiama", said the manager.

 

On the other hand, the manager affirmed that it is essential that the activity of the sector brings wealth or minimizes the issues of poverty, mainly in the areas or regions where this natural resource is exploited.

 

"We are concerned about the levels of poverty in the regions where diamonds are explored," said the official, who has worked in the sector for decades.