Congo eyes trebling diamond industry value

Posted in News by AGavin on October 16th, 2007

Source: Reuters 

By Philip Blenkinsop 

ANTWERP, Belgium, Oct 16 (Reuters) - The Democratic Republic of Congo sees a potential tripling of the value of its diamond production as efficient industrial groups take over from local players, its deputy minister of mines said late on Monday. 

“Now we’re at around $600 million. We have scope to push that to $2 billion,” Victor Kasongo told Reuters television. 

The country, that last year held multi-party elections, currently has about 700,000 artisanal miners digging out what Kassongo described as the “long-hanging fruit”. 

Congo is still emerging from a civil war that killed almost 4 million people and has seen renewed fighting in the east in recent months. 

It has set itself goals to increase efficiency of production and boost transparency of distribution by 2010. 

Actual production is estimated at about one third higher than declared output. 

“We have 70 percent of diamonds from artisanal mines. We suffer from smuggling and trading not based on the rules,” Kasongo said. 

Congo is also currently evaluating 65 mining concessions for all materials mostly granted during a six-year war and the three-year transition period that followed. 

They involve major players such as Anglo American (AAL.L: Quote, Profile, Research) and BHP Billiton (BLT.L: Quote, Profile, Research)(BHP.AX: Quote, Profile, Research). 

The review began in June and was due to last three months, Kasongo said, but the investigating team was still busy. 

He added that the process should be complete by the end of the year, when companies would be informed whether their concessions would stand. 

“The essentials have been done, but the issues are complex and now there are discussions in government to see which contracts have merit and which do not and should be ended,” the deputy minister commented.