Diamond multinational De Beers Group has signed two mineral investment contracts (MICs) with the government of Angola for licence areas in north-eastern Angola.

This follows the late 2021 announcement that De Beers had applied to explore in Angola following substantive reforms in the country’s diamond sector.

“The MICs for the two licence areas are for the award and exercise of mineral rights covering all stages of diamond resource development, from exploration to mining, and span a period of 35 years.

“Each concession area will be held by a separate new joint venture company formed by De Beers Group and Angola State-owned diamond company Endiama,” De Beers says.

De Beers Group will hold a substantial majority interest in the new companies, with Endiama having the ability to incrementally increase its equity share over time in line with certain conditions outlined in the shareholder agreements, albeit with De Beers Group maintaining a substantial majority.

“The signing of these contracts represents an important milestone in our new partnership with Angola, which is based on a mutual desire to build a thriving diamond sector that delivers meaningful socioeconomic benefit for Angola’s citizens,” says De Beers Group CEO Bruce Cleaver.

“Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country. Angola remains highly prospective and we look forward to being part of this next stage in the development of Angola’s diamond sector.”

Further, following the signing of the MICs and subject to the fulfilment of relevant regulatory conditions, De Beers Group expects to start exploration activities in the licence areas this year. Any resource development beyond exploration will depend on the outcome of exploration activities and the economic potential of the diamond deposit.