Angolan Diamonds back on track

Angolan diamonds sparkle again as reforms put production back on track: Six hundred miles east of the Angolan capital Luanda is a small city named Saurimo, whose primary industry has traditionally been agriculture. So, visitors might be surprised to come across a sprawling new development of large buildings, a power station and empty plots of land awaiting new construction on its outskirts.

The $77m Saurimo Diamond Development Hub, built on the road toward the large Catoca diamond mine, was inaugurated by President JoãoLourenço last August. It represents the southern African country’s efforts to shake off its troubled past – one that has made it a no-go zone for many miners in the past – and finally realise the promise of its immense, largely untapped daimond deposits.

It’s an invitation to which global investors and miners have responded. Most recently, industry leader DeBeers Group announced that it has signed two mineral investment contracts to begin diamond #exploration and mining in Angola, after exiting the country due to unfavourable business conditions 10 years ago.

“The signing of these contracts represents an important milestone in our new partnership with Angola,” said De Beers CEO Bruce Cleaver in a statement.

“Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country.”

The announcement marks the return of all three diamond majors to the country. Sector leader Alrosa and third biggest Rio Tinto are already active in Angola.

“Angola is probably the most prospective jurisdiction for diamond exploration and development in the world right now,” says global diamond analyst Paul Zimnisky. “There is a lot of pent-up demand as many companies considered it off-limits until recently.”