ENDIAMA, May 2004, Balanço de Implemenção da Estrategia do Governo Aprovada para o Relançamento do Sub-Sector Diamantífero e Perspectivas.
Global Witness and Partnership Africa Canada Publication, ISBN -1894888-63-4, Rich Man, Poor Man Development Diamonds and Poverty Diamonds: The Potential for Change in the Artisan Alluvial Diamond Fields of Africa.
Oomes, Nienke et al., August 2003, “Diamond Smuggling and Taxation in Sub-Saharan Africa”, IMF Working Paper WP/03/167 (International Monetary Fund).
Partnership Africa-Canada, July 2004, “Diamond Industry Annual Review, Republic of Angola 2004”, The Diamonds and Human Security Project (Ottawa, Canada).
Prepared by Maria Mendez.
This estimate does not include any allowance for smuggled output, which has recently been estimated at US$350 million per year (Minister for Geology and Mines, December 2004)
Gem quality stones account for only 5 to 10 percent of world supply.
Kimberlite deposits refer to diamonds that originate in a volcanic crust in the earth’s surface. Alluvial diamonds are those stones washed out of weathered kimberlite deposits into river systems. At present, apart from the large Catoca mine, nearly all production in Angola is from alluvial deposits.
Empresa Nacional de Diamantes de Angola, ENDIAMA.
Garimpeiros generally work in small teams, often diving into river beds, and are frequently dependent on middlemen for equipment, supplies, credit and the purchase of any diamonds collected.
ENDIAMA retained a large workforce through the civil war, despite having few operational functions.
ENDIAMA, Pesquisa & Produção (P&P).
The record of previous efforts to reorganize and reshape the sector has been poor in terms of implementation and longevity.
Operação Brilhante (Operation Brilliant). The majority of expelled workers are presumed to have been of Congolese nationality, many of whom worked in or near mines controlled during the civil war by UNITA.
Catoca’s shareholders in 2002 included ENDIAMA (33 percent), Alrosa (33 percent), Daumonty Financing, and Oderbrecht.
Remarks by Chairman Avanaldo de Souza. ENDIAMA recorded sales of 1 million carats by the informal sector in 2000.
Prospective financing includes joint-venture partners BHP Billiton and Escom’s subsidiaries: Angola Mining Finance, Ltd and Angola Mining Services Ltd. Banco BFA is also expected to provide financing.
SODIAM selling offices were opened in Tel Aviv in July 2004 and in Antwerp in November 2004. Offices are expected to open in Dubai and New York in 2005. It is reported that work has been started on the cutting and polishing plant planned by the Leviev group.
UN resolutions in 1999 determined Angolan diamonds as “conflict diamonds” and sanctions on Angolan diamond production were established.
ASCORP was designed as a joint effort between SODIAM and two foreign companies, WELOX owned by the Lev Leviev Group and Tais, owned by Belgium’s Sylvan Goldberg.
The Kimberley Process, a coalition of industry and nongovernmental organizations and government, established an international certification scheme for rough diamonds backed by the UN General Assembly to help outlaw trade in “conflict diamonds”.
Economist Intelligence Unit and Global Witness. This seems in part to have reflected the low prices paid by ASCORP relative to comparable international prices.
The Ministry of Finance does not produce estimates of the proportion of tax payments attributable to the diamond sector, although the Ministry of Geology and Mines and ENDIAMA (2004) issue a table on diamond sector fiscal contribution. (see Table II.4)
This reported revenue does not seem to include payments by companies for receipt of mining rights or profits earned by SODIAM and ASCORP as a result of high marketing margins.
It is reported that the first phase of such a study has since been completed.