Angola’s diamond industry is emerging as an increasingly attractive investment opportunity, driven by legislative reforms, the discovery of high-quality deposits, and a forward-thinking approach by the government. With the Ministry of Mineral Resources, Oil, and Gas actively engaging with regional and global partners, Angola aims to enhance diamond production and position itself as a hub for this precious gem.
Sectoral Reforms Encourage Foreign Investment
As the fourth-largest diamond producer in Africa and the sixth globally, Angola witnessed a production of 9.8 million carats in 2023. To achieve its ambitious goal of producing up to 14.6 million carats in 2024, the country recognizes the crucial role of increased foreign investment. Rogerio Guimaraes, Director of Geology at Angola’s state-owned mining company ENDIAMA, highlighted the significant changes in the mining sector over the last five years, emphasizing the government’s commitment to attracting investors.
Key reforms include the establishment of the National Agency for Mineral Resources in 2020, introducing new capital investment and repatriation policies, implementing updated diamond marketing policies, and improving fiscal terms.
Eugenio Bravo da Rosa, CEO of Angola’s national diamond trading company Sodiam, explained the positive impact of tax incentives on investors. The new policies reduced taxes for local polishing of rough diamonds from 3.5% to 2.25%, and for exports, the tax decreased from 5.6% to 3.5%.
The restructuring efforts have already yielded positive results, making Angola’s mining industry an enticing prospect for investors. The stable political and social environment, attractive investment legislation, market-focused diamond marketing policies, strong geological potential, capital repatriation guarantees, and the presence of high-quality diamonds contribute to the country’s appeal.
Moreover, the government provides available data and information, facilitating a better understanding of the Angolan mining sector and easing the investment process for companies.
Angola’s Bright Diamond Future
Recent developments underscore the increasing interest in Angola’s diamond industry and the success of regulatory overhauls. In February 2024, diamond company De Beers signed a Memorandum of Understanding (MoU) with various Angolan mining companies, signaling a commitment to diamond exploration and production in Angola. The company’s focus on Angola was highlighted by De Beers’ Senior Exploration Manager, Mike Roberts, during a conference in Cape Town.
The agreement builds on significant milestones in 2023, including the discovery of the second-largest diamond ever unearthed at the Lulo Mine – a 235-carat type IIa diamond. Additionally, the launch of Tech-Minas, an earth observation tool mapping diamond-related activities, showcased the industry’s technological advancements.
Angola commenced operations at the country’s largest diamond mine, the 600-meter-deep Luele Mine, in November 2023. The project is expected to yield 628 million carats over a 60-year lifespan, with an annual production target of six million carats.
AOG 2024: Bringing Diamond Producers to Angola
The Angola Oil & Gas (AOG) conference, Angola’s premier oil and gas event, serves as a strategic platform for introducing global diamond companies to Angolan opportunities. With a focus on attracting new investment, the event enables potential exploration and production firms to showcase their technology, expertise, and ambitions. Simultaneously, the conference provides insights into upcoming opportunities for the Angolan government, state-owned diamond firms, and connects local service providers and manufacturers with projects. AOG 2024 aims to facilitate business transactions and bring Angolan oil, gas, and minerals to a global consumer base.
