Revenues from Angolan diamond exports for the first six months of this year fell by 2.8 percent compared to the same period last year.
From January to June, 4.66 million carats were sold, resulting in a gross value of approximately US$711.7 million. These data were released yesterday, in Luanda, by the National Director of Mineral Resources.
Paulo Tanganha stressed that the main destinations for Angolan diamond exports were the United Arab Emirates, with 65.6 percent, and Belgium, with 29 percent, respectively. The remaining 5.4 percent were exported to different destinations.
According to Paulo Tanganha, the reduction recorded in exports was due to political issues, such as the Russia-Ukraine conflict; also market issues, such as the effect of inflation in the United States of America, in addition to issues of the economic context such as that generated by the evolution in the synthetic diamond market.
Other factors that may have also influenced the reduction in diamond sales are the fact that most mines focus more on prospecting activities than on diamond production, also a result of the current context of the international market. Still on the subject of the reduction in the quantities of carats sold, Paulo Tanganha reinforced the fact that changes in mining activity are taking place, “and it is always contemplating risks and threats.
That is, if the country registers a positive production, and when the market does not absorb , the tendency is always to reduce production to contain operating costs and invest a little more in prospecting”.
The manager made it known that the investment in prospecting aims to increase the inventory of diamond resources and reserves.
Currently, according to Paulo Tanganha, there is production in “stock” and as the market improves, the country will certainly sell more diamonds.
“Angola produces and sells. Diamonds are sold according to market needs, and when the market absorbs them, we will proceed with sales, especially when operating costs are compatible with selling diamonds to a certain price.
Otherwise, the diamonds are retained and we wait for the right moment in the market for sales to take place”, he detailed.
Another decrease registered by the sector in the period in question is the amount of carats recovered, with an approximate number of 3.9 percent, compared to the year 2022.
Paulo Tanganha said that, in the first half, around 4.93 million carats were recovered, mostly from industrial exploration.
Sociedade Mineira do Catoca was the one that most contributed to the production carried out, in the period under analysis, with about 67 percent of the total.
Estimated revenue of US$594.17 million
Diamond sales in the first half were estimated at US$594.17 million.
This indicator corresponds to a volume of 2.93 million carats, at an average price of 202.61 dollars.
As assured by the National Director of Mineral Resources, Paulo Tanganha, the Angolan diamond market remained sustainable in the period under analysis, with the intensification of mining prospecting and development activities, aimed at increasing resources and diamond reserves.
With these ongoing activities, it is expected that the sector will meet the production target set for this year, 2023, estimated at 12.41 million carats.
“The mining sector continues to be one of the main strategic areas for the economic and social development of the country, with the mineral resources explored and sold being an important source of revenue for the State”, defended Paulo Tanganha.
Fees
During the period from January to June, around US$44,139,519 were withheld in favor of Angola in Taxes and Fees, of which 67 percent referred to Royalties and 33 percent as Advance Industrial Tax.
Compared to the first half of 2022, tax revenue from the sale of diamonds recorded a 38 percent reduction.
This result is based on the constant drop in demand and, therefore, in the price of diamonds on the international market, which negatively influenced the sector’s gross revenue.
