Angola has officially commenced diamond mining at its expansive Luele project, marking it as the largest in the country and one of the world’s largest by estimated resources.
The project, formerly known as Luaxe, was discovered by Angola’s state-controlled diamond miner, Catoca, in 2013, representing one of the most significant diamond industry finds in over 50 years.
Despite the global diamond industry facing a downturn due to factors such as high U.S. interest rates, a slow post-pandemic recovery in China, and competition from lab-grown diamonds, the Luele project aims to tap into its vast resources.
With an estimated 628 million carats of diamonds and a projected 60-year lifespan, Luele stands out as the sole major diamond mine set to commence production in this decade, according to independent diamond analyst Paul Zimnisky.
The $600 million project faces challenges amid weak demand for rough diamonds, with India, responsible for cutting and polishing 90% of the world’s rough diamonds, urging global miners to halt sales to manage accumulated stocks.
Despite the industry’s current difficulties, the Luele project could contribute additional revenue to Angola, aiding the country’s battle against high inflation and supporting future investments.
The Luele project’s plant boasts an initial annual processing capacity of 4 million metric tons of ore, set to increase gradually to 12 million tons over the coming years.
Despite concerns about the project opening during a challenging period for diamonds, industry experts see potential for Angola as a highly prospective nation for diamonds.
Catoca, with a 50.5% stake in Luele, is partnered with Russia’s Alrosa, which owns 41% of the company but did not secure a direct stake in the Luele project.
