From Money Web

Angola, the world’s fourth-largest diamond producer by value, will approve a new concession to De Beers to explore for diamonds, Geology and Mines Minister Francisco Queiroz said.

London-based De Beers, majority-owned by global miner Anglo American plc (JSE:AGL), previously explored in Angola between 2005 and 2012 but relinquished its concession.

“The company made that big investment in prospecting, and unfortunately it didn’t have great results, but it is making a new bid, and another investment will be approved,” Queiroz told the Reuters Africa Summit on Thursday.

De Beers Chief Executive Philippe Mellier said last month the company hoped talks with Angola would be successful, with a view to starting early stage work this year.

“De Beers has been negotiating with (state-owned diamond firm) Endiama, and it is welcome in Angola as it has been in the country for a long time, even before independence from Portugal in 1975,” Queiroz said.

The government of Angola, the world’s sixth-largest diamond producer by volume, is keen to boost a sector in which few companies are currently drilling.

Russia’s Alrosa, De Beers’ main competitor, already operates the Catoca mine in Angola, the world’s fourth-largest, in a joint venture with Endiama.

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