Endiama, Trans Hex Agree to Get Projects Back on Track
February 12, 04
Angola's national diamond company Endiama and South Africa miner Trans Hex have agreed to establish talks aimed at re-launching diamond exploitation projects signed in 2002 in the Fucauma and Luarica regions, in north-eastern Lunda-Sul province.
Endiama last month said it might rescind the exploration contract due to delays by Trans Hex in carrying out some of the terms of the agreement. The contracts foresee the exploitation of diamond fields in the two regions over a period of four years for Fucauma and six years for Luarica.
Under the agreement, Endiama is to provide an area for diamond exploitation and carry out a project viability study while the South African company would raise funds to finance capital investments and operational costs.
Endiama said it has carried out its part of the deal and claimed Trans Hex’s failure to fulfill its obligations has postponed the start of the Fucauma project and caused a sudden fall of production levels in Luarica.
Trans Hex blamed the delay on technical problems and pledged to resolve all outstanding problems.
Endiama said production levels at the Luarica project would be re-established within a week while the Fucauma project will start this year.
The initial investment for the Fucauma project is estimated at $11 million and $15 million for the first phase of the Luarica project.
Fucauma’s production over the next four years is estimated at 480 thousand carats, with expected revenues of $70 million. Luarica’s production for the next six years is estimated at 789.6 thousand carats worth $170 million.