Strategically located to the western coast of Southern Africa, Angola is the third largest and one of the most mineral potentially endowed and blessed country in sub-Saharan Africa.
At the moment trends show more and more people are moving to Angola. Mining sector is booming, due to the Government efforts to promote private investment in targeted diversified mineral development.
The mineral wealth of Angola can play a prominent role in the economic growth of the country and building of the future. The diamond production characterized by gem of excellent quality, which makes the country one of the major world producers.
But the Government of Angola is still aware of the illicit diamond problems that can affect the country and regional economies. In this point, as one of the key and active players in the Kimberley Process, Angola continues to implement several measures in order to prevent the problems of conflict diamonds. Last year, the head of Government established an Interministerial Commission for the Protection of Diamond Resources.
Angolan mineral production has many resources, such as gold, precious metals, cooper, platinum group elements, iron ore, manganese, base metals, agro-minerals, ornamental stones – black granite and marble.

Angola said 8.6 million carats were mined by the formal sector in 2007. In 2007, Angola exported to Dubai 5.297 million carats, nearly 55 percent of its production.
In 2006 Angola became the 5th biggest manufacturer of raw diamonds in the world, by official statistics  Angola were mined 9,4 million carats in 2006, and 9,7 million carats last year. 
 Endiama (Empresa de Diamantes de Angola) is the national diamond company of Angola founded in 1981 and it is the exclusive concessionary of mining rights in the domain of diamonds. The company is based in Luanda.
Our agency had a possibility to address a couple of questions to the Head of Department of Strategical Planning and Investments, Tiago Dias.

We know that you were participating in a conference in Cape Town in February this year and that your plans are to take part in the exhibition in Angola, FIMA-2008.
How often you visit diamond or mining conferences and what is the main purpose?

Definitely, my main attention is to read about mining Africa, to exchange ideas and experience explanations, commercialization and to understand how other companies investing and getting involved in diamonds.

What is condition of the mineral resources in Angola at the moment?

The diamond sector is up and coming we believe that diamond industry in Angola has reached only 40% of its true potential.
We are now exploring with Kimberlite. There are 12 new Endiamas projects have added to the country diamond potential. Endiama invites international companies to get involved in those any projects.
Angola is third largest producer of diamonds in Africa, and fifth largest in the world.

What companies from over the world will be your partners?

The biggest diamond companies are taking an interest in partnership in Angola including De Beers, BHP, Alrosa, Petra Diamonds, Levaev group.

Do you expect price increase of your diamonds?

Based on the discussions and what we have been hearing on the conference in Cape Town, the idea is that there will not be major shift in the price, but we think there is a possibility of modest an increase of price. That of course, is based on the idea that consuming countries continue to buy diamonds on the current price especially in the area of jewellery.

How many carats of diamonds you mine?

There are sites in Angola where we found the diamonds that have a value of 1000$ per carat.
Last year in Angola the average price per carat for the production was 132$.
There was 9,7 mln carats mined in Angola last year by Endiama for a value 1,3 bln dollars.

Do you have colour diamonds?

We do have projects in Angola looking at colour diamonds, especially pink and green diamonds.

How does the government help you?

The Government has set the standards and tariffs to allow for the development of the Diamond Industry to make it more economically viable industry.
The Government is also building and repairing roads and bridges, airports and other infrastructures necessary for the diamond industry to function properly. Because during the Second War in Angola the diamond in the industry had to use air links to function and to get the diamonds to the market. And so the diamond industry now is looking for higher and better levels of production because of the better infrastructure.

Dr.Mankeda Ambroise Deputy Minister of Geology and Mines
“To enter in business and find a local content or local partner in Angola is possible, who will help you to develop a cooperative venture that can provide investor with more rapid access to the emerging market, reduce the learning curve and ultimately increase the probability ti implement your dream and business” – said Dr.Mankeda Ambroise Deputy Minister of Geology and Mines. “Beside the mineral potential and enabling legal framework, our country has also a very good Fiscal Regime applicable to the mining business. The Government of Angola has been welcoming proposals for private investments, including foreign investments in the mining sector. The Government is carrying out the several reconstruction programmes to develop Angola, let me take the attention to the events that will be taking place in Angola – International Mining Exhibition FIMA-2008.”

FISCAL REGIME for mining sector in Angola

Corporate taxation was set at 35% on net profit;

Royalty rates were set at 5% on precious stones and metals, 4% on semiprecious stones, 3% on metallic minerals and 2% on the other minerals;

A surface Tax of from USD 1.00 to USD 4.00 per square kilometer held is paid during exploration, only during exploration phase;

Withholding Tax on dividends in 15%. Mining equipment and supplies are exempt from import duties, when not available in the country, and exemption from import duties (which normally average 4%);

Depreciation on fixed assets is allowed and exploration costs can be amortized as follows: 50% in year 1, 30% and 20% in following years. Provision has to be made for the rehabilitation of the mined area.