Angola has officially commenced diamond mining at the Luele project, which represents a significant milestone for the country and adds to the world’s most substantial diamond resources.
This mine is expected to be the largest diamond mining project to come online this decade, with an estimated resource of 628 million carats and a projected operational lifespan of 60 years.
Located adjacent to the Catoca mine in northeastern Angola, Luele, previously known as Luaxe, is poised to enhance Angola’s status as a key player in the global diamond industry.
Production Goals
With an initial processing capacity of 4 million metric tons of ore, which is planned to increase, Luele’s pilot phase already boasts 5 million carats.
Independent diamond analyst Paul Zimnisky noted, “This is the only major new diamond mine in the world that will commence production this decade,” underscoring its significance.
In a market marked by fluctuating demand, Luele’s opening is both strategic and timely.
The U.S., as a significant diamond market, and the recovering Chinese economy, offer potential for growth despite the emergence of lab-grown diamonds.
Ownership and Stakeholders
The state-controlled diamond miner Catoca, which discovered the Luele deposit in 2013, holds a 50.5% stake in the project.
Notably, Russia’s sanctions-hit Alrosa, which owns 41% of Catoca, played a crucial role in discovering the deposit but did not secure a direct stake in Luele. The ownership structure has recently evolved, with state-owned mining company Endiama increasing its interest to 25%, and other stakeholders including Falcan, which holds a 19.5% interest
The $600 million Luele project could be a vital economic driver for Angola, which is facing high inflation. The project is seen as an investment in the nation’s future.
