Angola+Minerals

China Likely To Start Investments In Angola’s Minerals Sector In The Next Five Years Due To The Mineral Wealth And Strong Backing From Angolan Government Officials
There have been no major Chinese strategic minerals investments in Angola in the past five years. However because of the mineral wealth the country has and the establishment of China in the petroleum sector, it is likely Angola will further exploit its mineral wealth with the aid of China. According to Angolan Geology and Mines Minister Francisco Queiroz, it is the government’s vision to transform the mining sector into a major contributor to the State national budget and a major source of employment, with a direct impact on improving the living conditions of the Angolan people. Although only 1 percent of Angola’s exports are diamonds, China is a major trade partner and will not pass the opportunity to exploit the country’s minerals.
 * Executive Summary: **

Angola's Geology and Mines Minister Francisco Queiroz stated that the production of diamonds is the biggest mineral export and may rise to 9 million carats this year as the country starts new mines. IHS Global Insight identifies Angola as the fifth-largest producer of diamonds in the world; the country also contains iron ore, phosphates, gold, feldspar, bauxite, manganese, copper and uranium. The wealthiest province in terms of mineral resources is Cabinda, which is rich in gold, diamonds, uranium and phosphates. The Catoca mine in Saurimo is an open-pit mine about 520 miles east of Luanda and the reserves are currently drilled to about 660 feet. Catoca is the country's biggest diamond producer whose share holders are Endiama, which holds 32.8 percent and Russian diamond group Alrosa, which also has 32.8 percent while China-domiciled LLI Holdings owns 18 percent and Brazilian conglomerate Odebrecht has 16.4 percent.Endiama spokesman Antonio Jose Freitas stated that China's increasing demand for diamonds is expected to support Angolan diamond exports.
 * Discussion: **[[image:Angola S 1.jpg width="269" height="336" align="right" caption="This map shows the vast and diverse minerals Angola possesses. Source: http://tinyurl.com/lpyjfxj " link="http://tinyurl.com/lpyjfxj"]]

Angola aims to diversify its economy by developing its mining sector because the economy is highly vulnerable to price fluctuations in the oil market; other goals include increasing state revenue, reduce poverty and improve living conditions. According to Angolan Geology and Mines Minister Francisco Queiroz Angola remains one of the least explored countries in Africa in terms of mining; the territory of Angola represents attractive geological and mining resources. The government of Angola has been developing actions to increase knowledge of the geological potential of the country and mobilize the flow of investments to the national mining industry; the country offers political, economic and social stability; the country has both an attractive mining code and a law of private investment.

Source Reliability: High Analytic Confidence: Medium