De Beers Returns to Angola, Signs Exploration Agreement

Three years after leaving the country, De Beers is making a comeback after reaching an exploration agreement, approved today (Friday) by the Angolan Council of Ministers. De Beers and Endiama will establish a joint venture to explore and evaluate kimberlites in the Lunda Norte Province of the country.

In a statement released today, De Beers announced that Chairman of Endiama Dr Arnaldo Calado and the Managing Director of De Beers Gary Ralfe had reached agreement.

De Beers, clearly happy with the agreement, already has a team of geologists familiar with Angola. According to a company insider, "they are already packing their bags", although it is not clear yet when the exploration will actually begin.

The agreement also grants exclusive marketing rights over the diamonds discovered and found to be economically viable to mine and market, to another joint venture between the two.

Dr Calado congratulated the negotiating teams of Endiama and De Beers, saying: "The negotiations were conducted in a frank and diligent manner with the highest professional standards being applied."

Ralfe welcomed the agreement, “We have embraced a solid commitment to establish a successful partnership with Endiama, with the vision to contribute positively towards the future growth and stability of the Angolan diamond sector and the Angolan economy."

Endiama and De Beers decided to set aside a previously agreed arbitration process, saying "this settlement has created a foundation for the agreement".