Angola is set to gazette technical regulations for the new diamond marketing policy at the end of October or early November, according to a mining official with interests in the southern African country.
Lucapa Diamond managing director Stephen Wetherall was quoted by Antwerp’s Diamond Loupe as saying in a wide-ranging interview that producers would only determine which new channels the majority of their product would be sold through, and to which buyers once the regulations are gazetted.
“This ‘majority’ has been said to be up to 60 percent of production and the ability to use multiple competitive channels for price discovery will result in producers achieving international market prices,” he said.
Wetherall said the main reason Angola was implementing the policy was to drive inward investment.
“The key objective of the new policy is indeed to implement major reform, to improve the attractiveness and competitiveness of the national diamond industry and grow outside investment into Angola, so mining contributes more to the Angolan fiscus,” he said.
“More specifically, the policy intends to achieve this growth by establishing an effective system to ensure greater transparency and predictability in the rough buying and selling process, in order to maximise value and price stability.”
Angolan leader João Lourenço, who replaced long-time ruler Jose Eduardo dos Santos as President, said last June that he had ordered the state-run diamond companies Endiama and Sodiam to revise their policies to the benefit of the country and private companies.
He said during his Antwerp trip that Angola had been absent from the diamond bourse and that should change.
Lourenço also said Angola had not been able to benefit properly from its diamond resources as a result of policies that stifled growth, but wants that to change as well.
Angola produced 9 million carats last year worth $1.1 billion.