Sociedade Mineira do Cuango, located in the Lunda-Norte province, anticipates increasing its diamond production from the current 23,000 to 28,000 carats per month starting in the second half of the year. This announcement was made by Hamilton Carvalho, the interim director for Mining Operations.
Carvalho shared this update during a press event held as part of the company’s Social Responsibility initiatives.
He revealed that after two years of prospecting, new profitable deposits have been identified within the mining concession in the Cuango municipality.
Currently, the company is installing a new pre-treatment washing plant with a processing capacity of 125 cubic meters of gravel per hour.
This investment is expected to enhance both diamond production and market commercialization, aligning with the production plan set by the company’s corporate structure and the forthcoming exploration of a new deposit block.
“The investment in the new pre-treatment plant will enable us to increase diamond production and improve our commercialization prospects, given the content and characteristics of the deposits,” explained Carvalho.
Sociedade Mineira do Cuango currently holds an inventory of six to seven thousand carats of diamonds, which could fetch between $350 to $4,000 per carat.
The company anticipates surpassing the current average sale price of $280 per carat based on promising indicators from diamond guarantors.
Despite facing challenges from the international economic crisis, Carvalho noted that the company is on track with its production plan.
He acknowledged that losses and increased costs have been recorded since the fourth quarter of 2023 due to a decline in the global market following sales in July and August of that year.
Annually, the partners of Sociedade Mineira do Cuango approve an investment of approximately $11 million, which is allocated towards acquiring and maintaining machinery and paying salaries for around 700 employees.
Carvalho also expressed concerns about an increase in the tax rate, which includes an additional 5% and another 3% specifically for diamond producers.
