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Angola mining industry to grow 3.1 pc y-o-y driven mainly by diamonds - report

01 october 2012

Angola's mining industry, which is dominated by diamond exploration and production, is forecast to grow by 3.1 percent year-on-year (y-o-y) this year in real terms before it accelerates to 4.2 percent y-o-y in 2013.
Fast Market research said in its third quarter report for the country’s mining industry that the rate of growth was expected to remain stable thereafter with diamonds providing the main thrust for production growth over the medium term.
Real growth in mining was also forecast to average 3.98 percent y-o-y during the 2012-2016 forecast period.
The report noted that Angola-based diamond miner Sociedade Mineira de Catoca (SMC) was awarded the rights to carry out prospecting for diamonds in the province of Kwanza Sul during the period under scrutiny.
The announcement followed the completion of surveying work by SMC in the mining zones of Gango and Quitubia, both of which encompassed a concession area of 3,000km sq.
The company was due to install equipment for prospecting in the area over the coming weeks in addition to carrying out demining and geological analysis of the region.
The project will be the first diamond mining enterprise in Kwanza Sul province and was the culmination of ongoing attempts to launch exploration projects at Gango and Quitubia since 2001.
Major diamond reserves of diamonds in Angola were located in the provinces of Lunda Norte and Lunda Sul.
However, new areas of mining including iron ore, gold, copper and phosphates were also receiving increasing international interest from investors and were expected to provide further momentum for Angola's mining sector over the long term.

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