A Rough Patch for Angola’s Diamonds: Prices Tumble in 2024

Angola’s diamond industry faced unexpected challenges as prices dropped dramatically in the first half of 2024.

By August, the Empresa Nacional de Diamantes de Angola (ENDIAMA) reported a decline of 30% to 55% from expected values.

This downturn has significant implications for the national economy and the global diamond market. During a recent workshop, Laureano Receado Paulo, an ENDIAMA executive, discussed the disheartening market conditions.

He warned that maintaining current price levels could jeopardize the company’s year-end results.

Paulo also shared insights into the operational hurdles, emphasizing the need for better geological insights and enhancements in diamond processing techniques.

Strategic Directions and Initiatives

In response to these challenges, ENDIAMA is advancing its strategies in several key areas:

• Geological Exploration: Boosting efforts to locate new mining sites.
• Operational Efficiency: Streamlining processes across dismantling, loading, and transport.
• Environmental and Economic Sustainability: Focusing on reducing environmental impact and fostering social responsibility.
• Development of Human and Technical Capacities: Expanding capabilities at key sites like the Catoca mine to secure production for two more decades.

Paulo highlighted ongoing projects at the Chambacanda and Luaximba mines, which are poised to enhance the production landscape soon.

From January to May 2024, Angola extracted 4.2 million carats, creating $288 million in revenue.

The Catoca and Luele mines played a crucial role, contributing 88% of the output from primary sources.

The worldwide diamond market is also struggling. Prices for rough diamonds slid by 15-20% last year and are now 25% lower than early 2022 levels.

The emergence of lab-grown diamonds and sanctions against Russian polished diamonds exacerbate these trends, further disturbing the market.

Endima is recalibrating its operations to foster growth and value. By taking direct control of the Catoca and Luele mines, the company is enhancing its operational autonomy.

The Luele project is particularly promising, with the potential to become a leading global diamond producer.

Looking Ahead

Angola is ambitiously aiming to boost its diamond output by 50% in 2024, targeting 14.6 million carats, up from 9.7 million in 2023.

This surge is expected to generate $2.5 billion, significantly up from $1.51 billion last year. The Luele mine is central to these aspirations, potentially producing 20 million carats annually.

Despite current market challenges, ENDIAMA’s proactive strategies and the rich potential of new mining projects offer a glimmer of hope for Angola’s diamond sector.

These efforts are not only crucial for the country’s economic health but also for maintaining its stature in the global diamond industry.