The largest diamond mine in Angola and among the greatest in the world in terms of projected resources, the Luele mine formally opens. The project is probably going to double the nation’s yearly production.
During the course of its anticipated 60-year lifespan, the 600-meter-deep deposit in the northeastern Lunda Sul Province is estimated to produce 628 million carats of diamonds.
The Luele Mining Company began operations on Monday, and Angolan President Joao Lourenco, along with Minister of Mineral Resources, Oil, and Gas Diamantino Azevedo, were present for the ceremony.
According to reports, Azevedo stated, “The production of this mine will contribute to a significant increase in diamond production in Angola.”
But experts have warned that the nation in Central Africa is starting its $600 million initiative at a bad moment. The sluggish post-pandemic recovery, competition from lab-grown jewels, and high loan rates in the US, which accounts for 55% of global demand, have all hurt the demand for diamonds worldwide.
Consultant to the diamond industry Richard Chetwode stated, “I think it’s opening at a terrible time for diamonds, but you can’t delay opening a mine.”
In recent months, there hasn’t been as much demand for raw diamonds. In order to handle the backlog of inventories, miners worldwide have been urged to stop selling diamonds, with India being the country where 90% of the world’s rough gems are cut and polished.
Nonetheless, it’s thought that the Luele project might bring in more investment and boost Angola’s budget revenues, which are severely affected by inflation.
