Joao Lourenço's plan to attract investors is gradually bearing fruit. Foreign mining companies are once again interested in Angolan diamonds. After Rio Tinto six months ago, De Beers has just signed two 35-years investment agreements with the government. Meanwhile, Luanda is pushing for reforms.
De Beers has just signed two mining investment contracts with the Angolan government for diamond exploration in the provinces of Lunda Norte and Lunda Sul for 35 years. Endiama, the Angolan state-owned diamond company, will be a minority shareholder with the option to grow its stake in the ventures. While the investor's financial commitments are not officially disclosed, according to local press reports, they amount to US$33.2 million.
Ten years after ending its investments in Angola, De Beers marks its return to the country. The company left Angola in 2012 due to disagreement with the former regime of José Eduardo dos Santos. Other several operators complained about the state of affairs in the country, naming clientelism as the most significant issue of the former government.
While De Beers is making a comeback, another diamond giant has seen fit to invest in Angolan mines. The Anglo-Australian Rio Tinto signed a similar contract last October with Endiama. Speaking to the media at the signing of the agreement in Lisbon, Rio Tinto representative Ken Tainton highlighted the 'efforts of the Angolan government to develop the diamond sector with the implementation of the mining code and economic diversification programs.'
For the past four years, Joao Lourenço has been effectively trying to sell Angola as a destination to investors worldwide. He initiated several reforms to clean up the sector and increase transparency. On Monday, April 25, the Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, inaugurated the country's first diamond laboratory. This facility, an entity of Endiama, aims to support diamond exploration through sample preparation, analysis, and characterization.
In a context of recovery, the arrival of new investments responds to the pressing needs of an Angolan economy that is fundamentally oil-based and in search of diversification. The next step is to create a real social impact by extracting Angolan diamonds.
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