Govt. of Angola decides to purchase diamonds locally

In an initiative to encourage diamond mining companies in its country that have been facing the brunt of reduced global demand and prices, the government of Angola is deciding to purchase diamonds from these local mining companies. The government believes its initiative will allow the companies to maintain liquidity to pay off the wages and other expenses.

The diamonds will be bought at “acceptable market prices,” as reported. Angola has been accounted as the fifth largest rough diamond producer in the world (by value) following Botswana, Russia, Canada and South Africa, and having a production of 9.7 million carats valued at $1.3 million in 2007. Most of these diamonds are produced by state-owned Endima.