Angola’s Endiama says sanctions against Russia could hurt its diamond operations

CAPE TOWN (Reuters) – Angola’s state-run diamond miner Endiama could face a hit to its operations as Western sanctions on Russia could delay supplies of parts and machinery, according to a government brochure released on Monday.

Western nations have unleashed crippling economic sanctions against Russia after Moscow launched its invasion of Ukraine in late February.

Endiama, which holds the exclusive concession for diamond mining rights in Angola, has already flagged an almost one-third reduction in diamond output to 10.05 million carats this year, from a forecast 13.8 million carats.

The company expects revenue of around $1.42 billion from the sale of its diamonds this year.

“One of the great challenges for 2022 will certainly be to maintain the sustainability of the mines while the war between Russia and Ukraine lasts,” said the government publication, which was made available at the Mining Indaba conference in Cape Town.

“Since the sanctions that the United States and Western countries have imposed on Russia may affect some national mining companies, delaying the supply of some machinery, parts and spares,” it said.

Endiama has signed contracts with Rio Tinto to explore its Chiri mine in the Angolan province of Lunda-Norte, while another project, Luaxe, was also expected to begin pilot production, it added, without providing a timeline.

Last month, diamond miner De Beers signed two mineral investment contracts with the Angolan government, the Anglo American subsidiary said ahead of a return to the country it left in 2012.

(Reporting by Wendell Roelf; Editing by Susan Fenton)