Angola is considering the creation of a diamond exchange. This was stated by the country’s Mineral Resources and Petroleum Minister, Diamantino Azevedo, during the recent inauguration of a diamond polishing facility (Angola’s third) in Luanda. (Diamantino means ‘diamantine‘.)

Currently, all the country’s diamonds that are produced by semi-industrial and artisanal operations, and 60% of the industrially produced diamonds, are bought and then sold by State-owned company Sociedade de Comercialização de Diamantes de Angola (the Diamond Commercialisation Company of Angola, better known by its Portuguese acronym, Sodiam). The proposed diamond exchange would replace Sodiam.

The diamond exchange concept is still in its early days, however. The way such an exchange would work is still under consideration. And Azevedo did not give any target date for its achievement. What he did say was that the idea was simply to apply diamond commercialisation practices which are already being used in other countries. “We are studying the models used by other countries and we think that, in the future, we may have a diamond exchange in Angola.”

It has been reported that one of the models under consideration is the existing diamond exchange in Dubai. Angolan officials have reportedly recently been investigating how it works.

The proposed abolition of Sodiam and its replacement by a diamond exchange would be in line with other reforms being carried out in the country’s mineral resources sector. (Angolan sources often refer to it as a sub-sector, as it falls under the same Ministry and Minister as petroleum.) Thus, the Empresa Nacional de Ferro de Angola (the National Iron Company of Angola, better known as Ferrangol, and which covers many more minerals than just iron-ore) is being abolished and replaced by the new Agência Nacional de Recursos Minerais (National Mineral Resources Agency). And the Empresa Nacional de Prospecção, Exploração, Lapidação e Comercialização de Diamantes de Angola (the National Diamond Prospecting, Exploration, Polishing and Commercialisation Company of Angola, more usually called Endiama) is to be partly privatised.

Meanwhile, the Angolan government’s international roadshow to attract foreign investor interest in five minerals concessions on offer has concluded its Beijing and London legs. The presentations took place in Beijing on September 16 and in London on September 20. The last leg is New York, scheduled for September 30. The bidding process for the concessions will start on October 7 in Luanda.

At the Beijing presentation, which was led by Azevedo, the Angolan ambassador to China, João dos Santos, urged the about 150 Chinese investors who attended, to put their money into minerals exploration and mining in his country. “I hope that this event will serve to improve your knowledge, and the appeal, of mining investment in Angola,” said Dos Santos.

He highlighted that the Angolan government was taking measures to improve the country’s business environment. The aim was to attract foreign investment into its mining sector by increasing “the confidence of international investors in the Angolan market”. In turn, this was intended to reduce Angola’s dependence on its petroleum sector.

The five mining concessions on offer are composed of two diamond concessions, one iron-ore concession and two phosphates concessions. The diamond concessions are in Lunda Norte and Lunda Sul provinces, the iron-ore concession is in Cuanza Norte province and the phosphate concessions are in Cabinda and Zaire provinces.