Angola Alluvial Field to Begin Production in May

(IDEX Online News) – Angolan mining firm Escom says its Tchegi alluvial site will go into production in May, Bloomberg reports. Together with Escom’s existing Luo kimberlite, the alluvial site is expected to boost its annual diamond output to 420,000 carats.

The alluvial field is located in the Lunda North province, 850 kilometers (530 miles) from the Angolan capital Luanda. According to Escom president Helder Bataglia, his company and former partner BHP Billiton had spent $200 million over eight years prospecting 14 concessions the province.

Escom and its partner, state-owned Endiama, also plan to expand mining at the $300 million Luo mine after evaluating three new kimberlites. A feasibility study is expected by March 2014, Bataglia said.

BHP Billiton left Escom’s prospecting phase in 2010, while Russian mining major Alrosa exited the Luo mine the following year. Since then, the Angolan government has simplified its mining code, reduced the minimum government stake to 10 percent of future projects and reduced taxes to 25 percent from the previous 35 percent.