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

To: gemsearcher who wrote (3356)	5/14/1999 10:35:00 AM
From: VAUGHN	Read Replies (2) \| Respond to of 7235

Hello Gemseacher This on the wire this morning: May 13, 1999 17:27 S.Africa diamond miner quits war-torn Angola By Darren Schuettler JOHANNESBURG, May 13 (Reuters) - South Africa's Ocean Diamond Mining (ODM) on Thursday joined a growing list of foreign mining companies fleeing the bloody civil war in diamond and oil rich Angola. Ocean Diamond said its operations in the southern African country are on hold and the company declared force majeure under agreements signed with its Angolan partners. The Cape Town-based company also took a 13.5 million provision ($2.2 million) against the carrying value of its Angolan grassroots projects and concessions. Angola fell back into civil war seven months ago when fresh fighting erupted between government and rebel UNITA forces, shattering a 1994 peace accord. "ODM cautions that in view of hostilities in Angola, operations have been put on hold and force majeure declared...," the company said in a statement. Uncertain of how long the conflict will last, Managing Director Andre Louw said the board took the prudent decision of writing down the Angolan operations. Excluding the extraordinary item, ODM posted a profit after tax of 20.3 million rand in the year ended March 31, up from 17.3 million rand a year earlier. Foreign companies have been uneasy in the former Portuguese colony since last November when gunmen attacked the Yetwene mine operated by Canada's DiamondWorks , killing eight workers and kidnapping 10 employees who remain missing. The attack is believed to have been carried out by UNITA, the National Union for the Total Independence of Angola. Fears of UNITA attacks have led other foreign companies to halt operations while the outbreak of fullscale war has stopped many civil engineering projects needed to exploit Angola's alluvial diamond beds. Toronto-based SouthernEra Resources shutdown its Luo and Cassanguidi concessions in January due to heavy fighting in the diamond-rich province of Luanda Norte. In March, South African mining giant Anglo American Corp withdrew prospecting staff out of southwest Angola where it has held two exploration concessions close to the border with Namibia since 1997. Diamond analysts estimate that $600-$700 million worth of diamonds are produced each year, of which UNITA mines just under half. The Angolan government says diamond output rose to 2.764 million carats in 1998, worth $431.9 million. Regards