The National Diamond Company of Angola (Endiama) is implementing measures to stabilize the financial situation of the Lunhinga and Luminas mining companies in Lunda-Norte, both of which are facing significant challenges due to market pressures and high operating costs.
Laureano Paulo, Endiama’s Executive Administrator for Mining Operations, Participation Management, Audit, and Quality Control, shared this information during a press briefing on Wednesday, following the Diamond Production Balance Workshop for the first half of the year.
Paulo explained that Lunhinga and Luminas are experiencing difficulties in maintaining profitability, prompting Endiama, which holds shares in both companies, to intervene.
The state diamond company’s main concern is to mitigate any negative impacts on production and prevent potential social repercussions for the workforce.
“We currently face constraints in Lunhinga and Luminas,” Paulo stated. “Any disruption in these projects could have a significant impact on our production targets for the year and on the livelihoods of the workers.”
As part of the financial difficulties, Sociedade Mineira do Lunhinga was forced to suspend 102 employee contracts in July, according to the company’s President of the Management Council, Samuel Republican.
Republican cited both internal and external factors as reasons for the company’s financial struggles, which have hindered its ability to meet key obligations, including salary payments.
To restore stability, Lunhinga, which employs 350 workers, plans to reduce operating costs and focus on executing an investment plan aimed at increasing production.
However, the company’s output for the first half of the year fell short of expectations, producing only 18,000 carats over six months, instead of the 30,000 carats initially planned.
“The company’s strategy for the coming months is to leverage production to overcome the critical situation we are currently facing,” Republican added.
