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Gold/Mining/Energy : DIAMONDWORKS DMW.v -- Ignore unavailable to you. Want to Upgrade?

To: Diamonds Are Forever who wrote (245)	2/3/1999 1:12:00 AM
From: Diamonds Are Forever	Read Replies (1) \| Respond to of 413

You might all want to read this as well, Endiama is a partner with the government War Hampers Diamond Mining Luanda TPA Television on January 24, 1999 Endiama [Angolan Diamond Enterprise] intends to improve diamond prospecting operations, but there is a major obstacle: Jonas Savimbi. Angola's warlord is preventing Endiama from implementing all its plans. Nonetheless, the enterprise expects to yield satisfactory results in the next millennium. By 2000, Endiama plans to produce about 2 million carats. [Begin Endiama managing director Jose Dias recording] A carat fetches on average $250, depending on the quality of the diamonds. Our current production totals $188 million. Diamonds bought on the informal market amount to $274 million. So, the overall annual production is about $430 million. [end recording] Endiama is planning operations for Moxico, Bie, Malanje, Uige, and Cuando Cubango Provinces. The enterprise contributes to the state general budget, but only with a thin slice because the war prevents Endiama from expanding its operations. Several projects have been shelved in view of instability, resulting in losses amounting to millions of dollars. Endiama should handle all of Angola's diamond production, but it has been faced with various problems, notably illegal mining by Jonas Savimbi's UNITA [National Union for the Total Independence of Angola] and several foreigners, mainly from neighboring countries. [Begin Dias recording] We are aware that UNITA is involved in illegal diamond mining. We have been trying to control the situation with the defense and security forces to prevent diamonds from leaving Angola. It is not an easy task, but we will do our best to control the entire diamond production. We will try to create social conditions to relocate some of the residents from the diamond areas, and provide them with other jobs. We are working together with the provincial governments to achieve this goal in 1999.[end recording] Endiama is faced with an extremely difficult financial situation in view of instability in so-called sensitive areas. For instance, Cuango, the main mining area, has deprived Endiama of about 80 percent of its revenue. This gives an idea of how difficult it is to manage a company in dire straits. Revenue improved substantially since the establishment of (Xicotolo) company in Nesage just over two years ago, but this is not the ideal situation. [Begin Dias recording] Endiama and De Beers have been surveying Malanje Province's Quela region. We have tried to survey Cuando Cubango Province, but the political and military situation has prevented us from operating there. We have discovered primary deposits in the northeastern region. A number of companies have been licensed to conduct aeromagnetic surveys, but UNITA has prevented us from doing that. We need to collect samples, but some of the roads have been mined and UNITA does not let us operate effectively. [end recording]