Angolan state diamond company Empresa Nacional de Diamantes (Endiama) said Monday it estimates it will produce 10.5 million carats of diamonds this year and collect US$1.4 billion (1.2 billion euros), which is less than initially expected.
The projections for production and revenue collection for 2022 were given today by the chairman of the board of Endiama, José Ganga Júnior, stating that they were “very conservative” projections.
Endiama initially expected to produce 13.8 million carats of diamonds this year and have revenues of around US$1.9 billion (1.6 billion euros), but due to the “current context and market prices,” the company has “corrected” its initial projections.
“The information we have today in the diamond sector points to a contraction in terms of prices, which is why we prefer to be a little conservative, but if we can get substantially higher prices, we will all clap our hands,” Ganga Junior explained.
The figures were presented Monday at a press conference to assess activities in 2021 and projections for 2022 as part of the celebrations of the company’s 41st anniversary, marked on 15 January.
According to Endiama’s chairman, the diamond sub-sector has a workforce of 19,461 workers, spread across several professions, of which 15,096 are direct and 4,365 indirect, with Endiama absorbing 454 employees.
At least 39 diamond projects are prospecting in the provinces of Lunda Norte, Lunda Sul, Moxico, Malanje, Kwanza Sul, Huambo and Bié and 13 mines are already in production, 10 of which are in secondary deposits and the remainder in primary deposits.
Ganga Júnior also spoke about semi-industrial mining activity which currently has 264 licensed cooperatives with 62 in operation, of which 29 are prospecting, 33 are in production and 202 are at a standstill.
The semi-industrial diamond exploration activity, in 2021, allowed for the recovery and marketing of 50,750 carats of diamonds and generated revenues of US$7.10 million (6.2 million euros).
The signing of a mining investment contract with multinational Rio Tinto, for exploration of the Chiri Project, and the acquisition of geology and drilling company GEOANGOL, to boost Endiama’s geology research capacity are also other gains for the sector.
Endiama’s director for Human Resources and Legal Affairs, Osvaldo Jorge Van-Dúnem, explained that procedures are currently being drawn up for the public tender for the sale of the Hotel Diamante, in Luanda, and preparation of the accounts for the privatisation of Alta 5, a security company owned by Endiama, is already concluded.
Van-Dúnem also said that a specialist company had been hired to determine the value of the shares to be sold on the stock exchange corresponding to Endiama’s 40 percent stake in its share capital.