ENDIAMA May Rescind Trans Hex Deal Over Delays
January 14, 04
State-owned Angolan Diamond Company ENDIAMA might rescind an exploration contract it signed with South Africa’s Trans Hex due to delays in carrying out some of the terms of the agreement signed by the firms.
ENDIAMA`s Administrative Council chairman Manuel Calado expressed dissatisfaction that Trans Hex is not honoring some of its commitments.
Some reports have said that ENDIAMA has given Trans Hex an ultimatum that if it does not fulfill its obligations within three months, ENDIAMA might have to rescind the contract.
ENDIAMA and Trans Hex last year signed a mineral exploration contract in which production should have started at the end of last year but has not yet begun.
The agreement states that ENDIAMA will provide the exploration area and carry out a feasibility study, while Trans Hex will mobilize financing for capital investments and operational costs.
Project director Miguel Almeida said that ENDIAMA has virtually completed its obligations and is waiting for Trans Hex to do the same.
According to the contract, ENDIAMA holds 38 percent of the project and Trans Hex has 32 percent with the remaining 30 percent held by six small national companies.