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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Valuepro who wrote (4980)	11/13/1999 6:01:00 PM
From: crudestope	Read Replies (2) \| Respond to of 7235

Dear Valuepro, Before commenting on your posting number 4982 re Angolan diamonds I would just like to remind you. Tomorrow is Remembrance Sunday on which the fallen of two world and many other wars are remembered. It is a very moving experiencing to see the tens of thousands of ex-service men and women, including Canadians and Americans and a few surviving veterans of World War I, march down Whitehall past the Cenotaph. We owe them much. De Beers has an embargo on the purchase of all Angolan diamonds without an Angolan Government certificate of origin. This is not a new policy. The company is now considering ending its buying operations in Democratic Republic of Congo (DRC; formerly Zaire) and Guinea (the pipeline for much of Sierra Leone's diamond production). Global Witness, a part of the 'Fatal Transactions' campaign to halt the sale of West and Central African illegal diamonds, notes that the conflicts in Angola, Sierra Leone and Liberia have been funded to a large extend by illegal diamond sales. It estimates that the Angolan rebel movement UNITA, led by Jonas Savimbi, raised US$3.7 billion through diamond sales between 1992 and 1997. A recent and still on going clearing operation by Angolan government troops has successfully cleared large areas of UNITA rebels and it is reported that Savimbi has fled the country. I expect a signed peace accord within six to nine months. What Angolan diamond exploration/production is concerned it should be noted that De Beers with government owned Endiama have been exploring 25 new kimberlite pipe discoveries in Lunde Norte Est where it has so far spent US$14 million and bulk sampling is to begin early next year. De Beers total exploration commitment in Angola is US$50 million. Endiama, Russia's Alrosa and Israel's Daumonty Financing operate the Catoca kimberlite mine with production expected to reach 1.2 Mct this year. Diamondworks, in which a South African empowerement group holds an interest, operates two alluvial mines (165 000 ct/yr) and SouthernEra holds a 51% interest in the Camafuca-Camazambo kimberlite complex and also holds concessions at Luo and Cassanguidi. Ashton, in which Rio Tinto has a significant interest, is also active there. Belgium's Terraconsult estimates Angolan diamond production at 5.3 Mct/yr, valued at over US$800 million. Angola and Sierra Leone are diamond treasure chests waiting to be opened. Crudestope.