De Beers has made a decisive move to enhance cooperation in the diamond sector, marking a crucial step forward in the company’s foray into Angola. During the momentous signing ceremony in Cape Town, South Africa, chief executive Al Cook expressed enthusiasm for the unfolding collaboration. This signifies a significant milestone, underlining a promising trajectory in De Beers’ engagement with Angola’s national diamond trading company Sodiam.
One of the pivotal agreements signed by De Beers, a unit of Anglo American (LON: AAL), involves ensuring the use of best practices in sorting and processing rough diamonds mined in Angola. Such a commitment underscores De Beers’ dedication to ethical and responsible diamond sourcing. The company is also set to review several kimberlite deposits, applying new technologies to ascertain their economic viability. This leap into innovation will further solidify De Beers’ position as a frontrunner in diamond exploration and extraction.
In addition to this, the collaboration aims to enhance transparency and traceability in Angola’s diamond production. The emphasis on ethical sourcing is a testament to De Beers’ commitment to fostering sustainable practices. Notably, the partnership also seeks to identify opportunities for leveraging De Beers’ Building Forever sustainability framework to empower local communities. This multifaceted approach will catalyze the socio-economic development of the region, underscoring De Beers’ holistic vision for its operations in Angola.
The resurgence of interest in Angola’s diamond sector is reflective of the country’s historical significance in the global diamond industry. While the early 2000s witnessed an exodus of major players such as De Beers, Angola has now reemerged as a focal point for diamond exploration and extraction. Rio Tinto (ASX: RIO) rekindled its presence in Angola in 2019, underlining the country’s renewed allure for leading mining entities. This resurgence presents a compelling opportunity for companies such as De Beers to capitalize on Angola’s rich diamond reserves and solidify their position in the global diamond market.
Angola, ranked as the world’s sixth-largest diamond producer as per Kimberley Process statistics, has proven its enduring appeal in the global diamond landscape. The country’s remarkable production capacity is underscored by the generation of 8.7 million carats in 2022, albeit slightly down from the previous year’s 9.3 million carats. This sustained production indicates the unwavering potential of Angola’s diamond sector, positioning it as a cornerstone of De Beers’ strategic interests.
