Angola — Angola's National Diamond Company (ENDIAMA) and South Africa's Trans Hex have decided on Tuesday, in Luanda, to establish talks, aiming at relaunching diamond exploitation projects in Fucauma and Luarica regions, in north-eastern Lunda-Sul province, whose contracts were signed in year 2002.

The deal will hinder the rescission from the contract due to the delay registered in the materialisation of the contracts, by the fact that the South African firm did not comply with the compromises signed with the Angolans.

The contracts foresee the exploitation of diamond fields in the two regions, in a period of four years for Fucauma and six years for Luarica.

Luarica project has started last April, hoping that it would have happened with the second project, late last year, which did not happen until now.

According to what was agreed on, it was Endiama's duties to grant the field for diamond exploitation and to carry out the project viability study, while the South African company was responsible for the mobilization of funds for the carrying out of capital investments and operational costs.

ENDIAMA has already complied with its obligations, leaving only Trans Hex to mobilize funds in order to carry out the investments, which will enable the acquisition of equipments for the starting of the production.

This fact postponed the starting of Fucauma project and caused a sudden fall of production levels in Luarica.

During Tuesday's meeting, the Chairman of Trans Hex's Managing Board, Tokyo Sexwale, justified the delay, saying that it was due to technical problems which may happen to any company.

More importantly is that we are all here to resolve all the problems and the situation is back to normality, said Mr Sexwale.

On his turn, the Chairperson of ENDIAMA's Managing Board, Mr Manuel Calado, said that the motives for the impasse were cleared up, and expressed his wish to work in order to restore the situation.

According to him, the production levels at Luarica project will be restablished within a week, while Fucauma project will start yet this year.

The two sides have also agreed to work together in commissions, aiming at resolving the differences.

The initial investment for Fucauma project is estimated at USD 11 million, while for Luarica there will be necessary about USD 15 million, in a first phase.

The foreseen production for Fucauma project, for the next four years, is estimated at about 480.006.60 carats, expecting the revenue to reach USD 70 million, while in Luarica, the production for the next six years is estimated at 789.624.85 carats worth USD 170 million.