Angola has put itself back on the mining radar by making significant progress towards creating a stable and more predictable investment environment, according to Anglo American.
Group chief executive Duncan Wanblad said in a keynote address at the African Mining Indaba in Cape Town, South Africa, that they are looking forward to being part of this next stage in the development of Angola’s mining sector.
He said they signed Mineral Investment Contracts with Luanda for licence areas in the north-east of the country, with each concession area being a partnership between De Beers and Endiama, Angola’s state-owned diamond company.
“The signing of these contracts represents an important milestone in our new partnership with Angola, which is based on a mutual desire to build a thriving diamond sector that delivers meaningful socio-economic benefits,” said Wanblad.
“Beyond diamonds, and with attractive reserves of copper and nickel, Angola is highly prospective and is one of four countries in sub-Saharan Africa where we have an active greenfield exploration programme.”
Meanwhile, Anglo’s leader said the Diamonds for Development Fund set up last year was designed to help accelerate Botswana’s economic diversification in support of the government’s Vision 2036, the National Development Plan.
De Beers offered an upfront investment of $75 million and further contributions over a decade that could total up to $750 million.
Wanblad said after an initial investment, the fund will receive income based on the profitability of the Debswana joint venture, aligning interests across the board.
“I cannot tell you how delighted we are to have reached this milestone for the next generation,” he said.
Wanblad also said that the industry had been witnessing a rapid decline in certain commodity prices as interest rates soared to dampen rampant inflation and economic growth faltered.
He said PGMs, nickel, lithium, and cobalt have all decreased sharply.
“Concurrently, mining companies have been facing their own set of challenges, fueled by declining ore grades and sharply increased input costs,” he said.
“Margins evaporate quickly in these circumstances, so something has got to give.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, from Cape Town, South Africa, Rough&Polished
