(Rapaport… March 7, 2004) Bakwanga Mining Company (MIBA), the main diamond company of the Democratic Republic of Congo (DRC), intends to ramp up production, invite new joint venture partners and tackle classification problems in an effort to lift profit, reports Reuters.
Michel Haubert, MIBA general manager, said on March 4, 2004, that about $15 million would be spent in 2004 on digging and processing plants in its principal concession, in an effort to boost diamond production to 8.5 million carats in 2005, from 6.7 million in 2003. “We need to invest because the quality and quantity of diamonds found in existing pits has been declining, as we have used the same pits for many years,” he said.
MIBA achieved its best production levels for over a decade in 2003, Haubert said. Turnover was more than $100 million last year, and it is expected to grow in coming years, with tenders being discussed for gold, chrome and nickel exploitation in 28,000 km of its 78,000 km concession. He added that the narrow five-band diamond classification system, based on the model created by De Beers, would be looked at to ensure higher returns. Under the system, diamonds are graded in five categories according to the quality of their cut. More categories would mean the quality of the stone could be more accurately reflected in its price.
In January, 2004, the DRC announced record diamond exports of $640 million for 2003, with predictions of $750 million in exports in 2004. MIBA is 80-percent owned by the DRC state, with the remainder held by Belgian subsidiary Sibeka. De Beers is a major stakeholder in Sibeka.
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