By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- ANGOLA, newest Luaxe Diamond Deposit will commence mining arbitration in the midpoint of next year. And would produce one million carats of diamonds worth $90 million next year according to Alrosia-Diamond Producer.
Catoca and Alrosa – Angola’s state controlled diamond miner found Luaxe’s Luele pipe in 2013. In furtherance, Catoca has spent $200 million in studying and developing research has said, the pipe may turn out to be the largest discovery in the industry in sixty-years.
‘’It will be one of the largest deposits in the world’’, Vladimir Marchenko – Alrosa’s Deputy Chief Executive in charge of its Africa Business pronounced to the media. Alrosa’s specialists finished reviewing a sample of Luaxe’s ore containing 45,000 carats of diamonds. This data will be used to complete the reserves audit he stated.
The pre feasibility study is yet to come, and the scale of Luaxe’s future production will depend on the project’s economics and global demand.
Global diamond production – Alrosa roughly calculates, it will fall to 139 million carats in 2023 from a record of 151million in 2017. It is is the world’s biggest diamond producer by volume. And it competes with De Beers- the largest by revenue.
In 2020, Luaxe’s ore will be processed at Cacoca’s nearby mine. Catcoca in which Alrosa owns 41% currently holds a 50% stake in the project. Both are discussing the final distribution of Luaxe’s ownership. Angola which aims to boost production to 14 million carats in 2023, is Alrosa’s number one priority in Africa especially since the country dropped here the practice of obligatory sales via ‘’priviledged’’ companies and improved Catoca’s corporate governance.
The new diamond trade policy signed by Angola’s President Jacob Lourenco in sales more transparent and boosted Catoca’s revenue by 30% Marchenko noted.
‘’It was a stimulus to expand our activities in Angola’’, he furthered. Alrosa will spend $9 million on exploration in Angola in 2020-2022. Speaking about Zimbabwe which aims to triple diamond production by 2023, Alrosa said that, its two year exploration there would cost around $12 million. A joint venture in which Alrosa plans to finalize a stake of 70% in December has applied for a number of Greenfield licences.
Alrosa is focusing ideas for diamonds in Mozambique which borders gemstone rich Tanzania and Zimbabwe. Its geologist will begin studying documentation in December.
Alrosa, with 50% of revenue coming from sales in the United States of America and western investors among its minority shareholders, has signed up to a process which helps to prevent ‘’blood diamonds’’ – blamed for financing conflict and criminality in some poor African countries from entering the global diamond trade.
Transparent and ethical business conditions are a must for Alrosa in Africa and elsewhere , the Deputy CEO stated ‘’We will never risk the existing business when choosing new projects’’.
For New Africa Business News Abdul Rahman Suagibu Reports, Africa Correspondent