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Angola to Curb Sodiam’s Control of Rough Sales
Jul 2, 2018 7:32 AM
By Rapaport News
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RAPAPORT... Angola plans to allow miners to sell up to 60% of rough
diamonds to companies of their choice, including to their own trading
divisions, Reuters reported last week.
The changes are part of the country’s reforms to its diamond
sector under President João Lourenço, who came to power in
September.
Producers must currently sell through state-owned trading
company Sodiam. As a result, Catoca, Angola’s largest diamond mine, lost an
estimated $464 million over the past six years because Sodiam often sold goods
to politically connected buyers able to negotiate below-market prices, Reuters
said.
The new system will price rough diamonds according to a
benchmark based on a sample of typical stones produced in Angola, the report
said, citing a draft presidential decree that could still change. The stones
will also undergo an evaluation using a price list “in line with the
international market.”
In addition, Angola will introduce sales that are open to
pre-approved buyers, similar to De Beers’ sights. Exceptional stones will go up
for auction individually at separate events, the report said.
Angola’s government will also increase its oversight of the
sector, which previously had a lot of freedom as state-owned diamond companies
Sodiam and Endiama had significant influence under former president José
Eduardo dos Santos, the report continued. Under the reforms, ministers will have
the power to appoint independent evaluators to intervene in disputes, and set
more transparent criteria for Sodiam’s selection of buyers. That includes
giving priority to polishers and jewelry manufacturers over traders who resell
the diamonds.
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Tags:
Angola, Auctions, Catoca, De Beers, ENDIAMA, João Lourenço, José Eduardo dos Santos, producers, Rapaport News, rough, Rough Diamonds, rough sales, Sights, SODIAM
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