Diamond mining in Angola has a long history, dating as far back as the first part of the 20th century. The first rough diamonds were discovered in 1912. Five years later DIAMANG was set up, the Companhia de Diamantes de Angola, which initially focused mainly on the exploitation of alluvial deposits in river beds, rather than on detecting underground deposits, know as ‘kimberlite pipes’.
The success of DIAMANG, which up to the year 1970/71 is reported to have held a countrywide concession, stating the right to prospect and mine diamonds throughout the territory of the Angolan colony, was considerable.
Diamonds remained the country’s second main export item, when coffee displaced diamonds as the colony’s principal export commodity. Meanwhile, DIAMANG grew into the largest commercial enterprise in Portugal’s African empire. The company’s activities helped ensure that Angola’s diamond exports, measured in quantitative terms, continued to expand until 1974.
Against this background of many decades of experience in diamond exploration and mining in Angola, the South African company De Beers entered the field in 1971, when the Portuguese government granted a diamond concession to a consortium which included De Beers as shareholder, with the aim of extending mineral development in the then colony. Further, although diamond mining was largely nationalized after Angola had gained independence in 1975,
Angola has extensive diamond reserves (estimated at 180 million carats), principally in the provinces of Lunda Norte and Lunda Sul in the central and northeastern parts of the country. To date, approximately 700 kimberlites have been located in the country.
Most of the diamond rich kimberlites are located along a north east - south west trend that extends in to neighbouring DRC. Diamond production generates over $650 million annually, although exact numbers are uncertain due to the amount of illegal diamond mining and smuggling. The diamond mining industry is a significant source for foreign revenue for the country.
In 2003, Angola sold between 5,3 Mct and 6 Mct worth of diamonds, at a value of about US$1 billion, through Sociedade de Comercialização de Diamantes de Angola (Sodiam). Angola produced an estimated 5.5 million carats in 2002 (officially). Almost all of this production was from alluvial and kimberlite deposits in the Catoca, N'Zagi, and Lucapa regions. Developing projects that also produced include the Calonda, Mufuto, Luo and Cuango areas.
Kimberlite mining would be able to place more control on smuggling and production than the current alluvial methods. However, capital outlays for the development of a kimberlite mining operation are extensive. Only foreign investment can provide such capital, and only under an agreement with Endiama, the state owned diamond mining company.
