Catoca diamond project turns over $116 million

The Catoca Kimberlite Diamond Exploration Project has recorded a net turn-over of $116 million in 2011 from the sale of 6.7 million carats, Angop learned Friday in Luanda.
The information was released by José Manuel Ganga Júnior, at the end of Technical Events celebrating the 31st anniversary of the State-run National Diamond Company (ENDIAMA).
According to the manager, the Project had operating costs estimated at $300 million, operating profits of $250 million and net profits of $145 million, against $115 million in 2010.
He explained the rise recorded in the project’s revenues resulted from a three percent rise in production, owed to a diamond price hiking in the world market.
Ganga Junior said Catoca has reached the top of its installed capacity and is working to increase the kimberlite reserves of its and other concessions.
He said bigger Diamond reserves will lead to a bigger diamond exploration capacity.
According to the manager, Catoca has an estimated useful life of 30 years, which he considered a balance period for creation of conditions of sustainability for when reserves run out.
As he explained “from our point of view, we must not increase Catoca’s production, in view of the reserve levels we have at the moment (about 217 million tonnes of ore which correspond to 140 million carat to explore).”
The Catoca kimberlite Exploration Project has a production capacity of 10 million tonnes per year, being India and China its main markets.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished