- Write by:
-
Wednesday, February 10, 2021 - 7:50:03 PM
-
923 Visit
-
Print
Mining News Pro - Investment group Gemcorp Capital and Endiama Mining, a subsidiary of Angola’s state-owned diamond miner Endiama, have partnered up to develop the Mulepe diamond deposit in the country’s northeastern province of Lunda Norte.
Gemcorp will own 75% of the business and Endiama 25% and alongside with funding a pilot project, the London-based investment firm will oversee operations.
Mulepe, which contains significant kimberlite and alluvial deposits, represents a key strategic project for Angola, the JV partners said. It aims to provide important employment opportunities and unlock value in a remote region of the country.
The companies will set up a pilot mining program in the course of the year to improve their understanding of the type and quality of diamonds present within the concession. They also expect to better determine the capabilities of local third-party service providers and value generation potential through diamond sales.
Following the pilot program, the JV partners will proceed with the $150-million development and expansion of operations.
At full production, Mulepe is expected to process about three-million tonnes a year of kimberlite and employ about 140 workers, mostly from the local community.
Betting on diamonds
The project is Gemcorp’s first investment in diamond mining in sub-Saharan Africa. It already manages other large-scale projects in Angola, including the Cabinda Oil Refinery.
Gemcorp CEO Atanas Bostandjiev said the company is excited to continue playing a role in helping the country capture the full value of its natural resources, while supporting the development of local communities.
“Angola is a country full of potential, and this partnership is yet another example of our belief in Angola’s economic future,” Bostandjiev said in the statement.
The country is the world’s fifth diamond producer by value and no.6 by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.
Angola held its first public diamond auction in 2019 and since then, producers no longer have to sell at below-market prices to a handful of buyers favoured by the state.
Last year, Endiama revealed it was seeking international partners in an attempt to place Angola among the world’s top-three diamond producers.
Before the coronavirus pandemic crippled global markets, Angola planned to increase annual diamond production to 14 million carats in 2022.
Short Link:
https://www.miningnews.ir/En/News/610422
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
A Russian arbitration court ruled on Monday that four units of Swiss commodities trader Glencore will pay more than 11.4 ...
Irish explorer Karelian Diamond Resources (AIM: KDR) said on Tuesday its search for precious stones in Finland has taken ...
An unusually warm winter in Canada this year has delayed the opening of a 400-kilometer (250-mile) ice road that is ...
Russia will regularly buy diamonds from sanctions-hit producer Alrosa through a state fund, the finance ministry said on ...
The US Energy Department on Monday announced $6 billion in federal funding to subsidize 33 industrial projects in 20 ...
Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into ...
Antwerp’s diamond dealers face long and costly delays following an EU ban on Russian-origin diamonds that took effect on ...
A Senegalese opposition coalition backed by popular firebrand Ousmane Sonko launched its presidential campaign platform ...
No comments have been posted yet ...