Angola diamond output to surge

CAPE TOWN.
Angolan state diamond firm Endiama is targeting output of nine million carats in 2011, up from 8,5 million carats last year, the company said yesterday.
Endiama, the world’s fifth biggest diamond producer, resumed production at three of its mines last year as the diamond market recovered from a slump triggered by the global financial crisis.
“I think 2011 production will increase and the revenues also be-cause the average price of diamonds is increasing.
“Last year it finished at US$111 per carat; in January the average price was US$134,” spokesman Antonio Jose Freitas told Reuters on the sidelines of an African mining conference.
Freitas said the company could produce nine million carats this year, suggesting revenue from diamond sales will easily surpass 2010’s US$955 million.
Angola is introducing new laws for diamond companies, stipulating that they use half of their revenues to pay operational costs, and the other half to pay taxes, investors and for local community development. — Reuters.