Angola’s diamond sector is grappling with a severe commercialization crisis, despite maintaining robust production levels, according to José Ganga Júnior, Chairman of the Board of Directors of Endiama, Angola’s state-owned diamond company.
Ganga Júnior revealed that over three million carats of diamonds are currently in reserve, awaiting more favorable market conditions.
Speaking during a press event on the sidelines of a workshop leading up to the 2nd International Diamond Conference of Angola, scheduled for October 23-24 in Lunda Sul, Ganga Júnior outlined the difficulties the sector has faced for over two years.
“The health of the diamond sector is not very good,” Ganga Júnior said, attributing the challenges to an “unprecedented” global market crisis. “While production remains strong, selling the diamonds has become a significant challenge.”
Currently, more than three million carats of diamonds remain unsold, highlighting the impact of the ongoing market difficulties.
However, Ganga Júnior emphasized that the company continues to maintain mining operations through “great resilience,” while acknowledging that the diamond market is cyclical and will eventually recover.
India, a key buyer of Angolan diamonds, lifted a temporary suspension on rough diamond imports that was imposed in the third quarter of last year in response to trade slowdowns and imbalances in supply and demand.
However, despite this positive development, the broader global market remains sluggish, with low sales volumes and significantly reduced prices.
Despite these challenges, Endiama is on track to exceed its production targets for 2024, with an estimated output of 14 million carats, marking the highest production volume to date.
Looking ahead to the 2nd International Diamond Conference, Ganga Júnior highlighted its goal of attracting investment in Angola’s mining sector, not only for diamonds but for other mineral resources as well. “We aim to attract national and international institutions, large and small companies, to invest in our mineral wealth,” he said.
He also underscored the importance of proper classification and evaluation of Angola’s mineral reserves, which currently exceed 600 million carats.
The workshop, featuring international experts, was a key step in ensuring geological prospecting proceeds without “skipping steps.”
Additionally, Ganga Júnior acknowledged the growing challenge posed by synthetic diamonds. Endiama is actively working with international bodies like the Natural Diamond Association to promote natural diamonds in the global market.
