/ 1 January 2002

Angola says new mine will yield $2,5bn

The government predicts that a new diamond mine due to begin operating this year contains reserves of

23-million carats worth about $2,5-billion, a news report said on Friday.

The Camafuca-Camazambo mine in northeastern Angola will produce gems worth roughly $4,7-million per month, state-owned daily Jornal de Angola said, citing government figures.

A consortium formed by state-owned Endiama, which holds the monopoly on mining and prospecting, Angolan company Comica, Canadian company Southern Era Resources and Israeli company Minex is investing $20-million in the project, the report said.

The project is for a kimberlite mine 150 metres deep.

Kimberlite mines, which burrow into volcanic rock, require complex technology. The project became viable only after the end of Angola’s two-decade civil war in April.

Most of Angola’s diamond production – estimated at 5,1-million carats, worth $730-million, last year – currently comes from alluvial deposits where gems are dug out by hand.

The only other kimberlite operation in Angola is the Catoca mine, also in the northeast.

Angola is the world’s fourth biggest diamond producer and is known for its high-quality gems.

Industry and public infrastructure were devastated by the war which also uprooted around four million people. – Sapa-AP