Angola’s soils reportedly contain a quarter of the planet’s kimberlites, diamond-rich deposits held in subterranean volcanic formations. In March 2003, a joint venture formed to tap the nation’s massive kimberlite potential at the Luo-Camatchia-Camagico diamond mining concession, which spans 116 square miles in the northeastern province of Lunda Norte. The Luo consortium is comprised of the state-run diamond group
Endiama, two Angolan holdings called Hipergesta and Angodiam, and Escom, the mining division of Portugal’s Espirito Santo investment group.
Rugged topography and underdeveloped infrastructure are just a couple of the hurdles to accessing the five mineral-packed kimberlite pipes at Luo. Nevertheless, the venture started operations in 2005 with a $200 million initial investment and a goal of creating one of the world’s largest mining operations, generating 1,200 jobs in the process. The mine initially had a processing capacity of 1 million tons per year, but already newer facilities have enabled the processing of 3 million tons of diamond-bearing rock per year, with additional investments set to boost it to 10 million tons annually. The consortium has also developed two diamond treatment centers at the site.
“WE FACED MANY CHALLENGES BUT TODAY LUO IS A REALITY.”
DR. MEFIRA ADAMOU,
Director General of Luo |
“We faced many challenges but today Luo is a reality,” says Dr. Mefira Adamou, director general of Luo. “Mining is a capital- intensive industry and to make something out of it takes a lot of investment. It is indeed an industry that does pay off, but it is a long-term return. At Luo, we are not talking about profits because the project is still in its implementation phase. To complete its construction will take another $500 million. Projects of this nature are the same all around the world. The necessary capital is always around $1 billion, including machinery, infrastructure, etc. Costs in Angola are high because we have to import everything.”
The Luo consortium remains extremely bullish about the outlook of the mine and its long-term view is also apparent in its support for the local community, where it has participated in the construction of schools, playgrounds and water and energy infrastructure.
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