Conflicting Reports on Impact of Sanctions on Angola's Diamonds
May 10, 22
(IDEX Online) - The Angolan government says Endiama, the state-run diamond company, could be hit by delays in Russian-made mining machinery and spares as the war in Ukraine continues.
But Russia's ambassador to the country is adamant that Western sanctions "will not affect its work in Angola in any way".
A Reuters report cites a brochure made available by the Angolan government at the Mining Indaba conference in Cape Town, South Africa.
"One of the great challenges for 2022 will certainly be to maintain the sustainability of the mines while the war between Russia and Ukraine lasts," said the brochure, which warned sanctions could affect some national mining companies.
However, ambassador Vladimir Tararov told RIA Novosti, Russia's state-owned news agency: "To some extent, the sanctions have even strengthened relations between our companies that operate in the diamond industry."
In January, Endiama revised down its forecast output for 2022 by almost a third, from13.8m carats to 10.5m carats, despite the current supply shortages of rough diamonds (forecast revenue down from $1.9bn to $1.4bn).
The company "corrected" initial projections in the "current context and market prices".
Angola is the world's fourth biggest diamond producer, but has yet to explore 60 per cent of its diamond-rich territories.
De Beers has revived plans to invest in Angola, after "substantive and consistent reforms" in a country torn apart by a 27-year-old civil war.
Pic shows Catoca mine, Angola.