Luanda: The Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, defended on Thursday in Luanda the need for African diamond producing countries to take urgent measures to halt the fall in prices of natural diamonds on the international market due to competition from synthetic diamonds.
According to Angola Press News Agency, the Angolan official highlighted that the diamond industry in Africa and worldwide is experiencing a worrying moment, with a sharp drop in prices due to the low value of artificial diamonds and pressure on the diamond traceability system. “The synthetic diamonds competing with natural diamonds, combined with the sanctions imposed by the G7 on Russian diamonds, are further raising the stakes in this sector,” the minister said.
Speaking at the inauguration of the official headquarters of the Association of African Diamond Producing Countries (ADPA) in Luanda, the Minister spoke of the need for this organization and its members to review their missions and strategies in order to make natural diamonds competitive. Diamantino Azevedo mentioned that in the current context, the Angolan government has taken various measures to make the legislation more favorable to the producer and the state, especially in the production and marketing of the product.
The minister highlighted the change in the governance model of the sector, the introduction of the law of semi-industrial exploitation to allow the participation of small national investors, and the increase in production. “Angola has ended its diamond monopoly and is counting on the return of the multinational DeBeers, as well as the arrival of the third largest company in the sector in the world, Rio Tinto, and the entry of other medium-sized companies for prospecting,” the minister said.
According to the Minister, the sector is also working on improving the marketing system and re-evaluating the process of creating the Angolan Diamond Exchange, due to the challenges of the current context of the sector. ADPA president, Zimbabwean Wiston Chitando, stated that the 21 countries in the organization are committed to overcoming the current situation, as together they represent more than 60% of world production.