Angola: Endiama Signs Mining Investment Contract With Rio Tinto Firm

Lisbon — A mining investment contract for the concession of "Chiri" diamonds in the Angolan province of Lunda Norte (north-east) was signed this Friday, in Lisbon, by representatives of the companies Endiama (Angola) and the Anglo-Australian firm Rio Tinto.

The contract was signed by Endiama CEO, Ganga Júnior, and by Rio Tinto representative, Kennerhbe Tainton.

According to the Presidential Decree No. 298/18 of December 5, the exploration area that was the object of the agreements reached in the various rounds of negotiations carried out with Rio Tinto, since April 2019, has an extension of 108 km², with an operating period of 35 years.

The Mining investment document foresees, at an initial stage, shares participation of 75% for Rio Tinto Angola and 25% for Endiama E.P. as well as the constitution of a joint venture.

The contract, which will last for five years, also provides for the possibility of the Angolan party increasing its stake to 49%.

On the sidelines of the ceremony, the minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, said that Angola is a country that has always chosen to work with the best mining companies in the world, so it is in this sense that they sought to work with Rio Tinto.

"Rio Tinto is one of the best mining companies in the world and whose technical capacity, experience and form of action are of interest to Angola, in order to add value to the Angolan mining sector, contributing to the increase in diamond production", he said.

According to the minister, in the short term, the aim is to reach an annual production of 14 million carats of diamonds, which is why this agreement is highlighted by the parties.

In turn, the representative of Rio Tinto company, Kennerhbe Tainton, believes that the diamond sector has a very promising future in Angola, due to its history, which is why his institution is interested in investing in it.

"Rio Tinto is aware of the efforts made by the Angolan government to develop the diamond sector with the implementation of the Mining Code and economic diversification programmes," he said.

Rio Tinto is an Anglo-Australian multinational, with headquarters in London (United Kingdom) and Melbourne (Australia), represented in more than 20 countries.

Founded in 1873, Rio Tinto Group is a mixed capital company traded both on the London Stock Exchange.

The British company, Rio Tinto, was created to explore copper mines in Rio Tinto, southern Spain, reason why the company is named Rio Tinto.

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