ANGOLA Trends and Developments Contributed by: João Afonso Fialho, Marizeth Vicente and Lukeny Pascoal, VdA
year. The Angolan government is confident that long-term investments in diversified minerals will attract a variety of other major and junior companies to invest in the country. In fact, it is expected that, with the Longonjo mine in full operation, the country will be able to fulfil 5% of the world’s needs concerning rare earths, a market where demand currently exceeds the existing supply, with China remaining the world’s biggest supplier. Angola is also focused on developing the coun - try’s minerals-processing industry. The Saurimo Diamond Development Hub, inaugurated in August 2021 and focused on the convergence of the entire national diamond value chain, is an example and has been promoted by the Angolan government as being the country’s final step in its quest to become a global diamond producer. Located on the road to the large Catoca dia - mond mine, the Saurimo Development Hub aims to significantly enhance the country’s diamond production capacity, enabling the processing and polishing of resources in addition to rough diamond exports, while ensuring that all the nec - essary infrastructure for such purpose can be found in loco (such as banks, insurers, private practices, employee accommodation, restau - rants, a factory school for polishers, and a tech - nical and professional school run by ENDIAMA, Angola’s state-owned diamond company, ready to provide training programmes to young people in a wide range of areas). The Saurimo Diamond Development Hub is divided into three main areas: commercial, industrial and one reserved for the hybrid power plant. According to recent information disclosed by Angolan executive consultants, there are lots still open to investors who intend to install manufacturing units within this infrastructure, and Angola is keen on stimulating the creation
of processing facilities, as the country is “...pro - ducing around nine million carats/year, most of which is exported raw”. Therefore, it would be “a victory for the country” if Angola could have the capacity to hone 20% of its local extraction (considering that 20% of production may be sold to cutters pursuant to Angolan law). ENDIAMA has provisionally released a list of 15 diamond projects being promoted, in a map of six provinces that includes, for the first time, Cuanza Sul, although the major diamond-pro - ducing regions will continue to be Lunda Sul and Lunda Norte, given their potential and already confirmed reserves. Cuanza Sul appears with the Quitúbia project, a primary deposit (kimber - lite), available to investors, whether national (pro - vided they have the financial capacity) or foreign. There are a total of 43,674 square kilometres to be concessioned, more than several countries the size of Switzerland. According to the dia - mond company, this map could be updated soon, taking into account the data collected as part of PLANAGEO (the National Geology Plan), which has given the national authorities a more realistic perception of Angola’s mining potential, especially for diamonds. According to the map, four of the diamond projects are in the province of Bié, corresponding to a total of 15,481 square kilometres, equivalent to around 30% of the total area available for diamond prospecting. In this first phase, according to a source at ENDIAMA, only 1,000 square kilometres of the Cuango min - ing project are in the mining phase – in other words, they have already received investment. The Angolan regulatory framework for invest - ment in the mining sector is robust and investor- friendly, attracting major players like De Beers, Rio Tinto, and Anglo American. As mentioned, the Longonjo project by Pensana Rare Earth is set to be Africa’s first large-scale NdPr rare earth
28
CHAMBERS.COM
Powered by FlippingBook