Diamonds are the continent’s best friend

January was a busy month for the diamond industry. To start, Gem Diamonds announced the discovery of a 910-carat stone — the fifth largest gem-quality diamond ever found — at its Letseng Mine.

This on top of the discovery of three 110+ carat diamonds in the month, while in Angola the Lucapa Diamond Company started off the year with finds of a 103-carat and an 83-carat diamond. Last year the Angolan miner announced the discovery of a 404.2-carat white stone.

Industry behemoth De Beers said late in January that it had mined more diamonds in 2017 than any time since 2008. The company reported it had mined 33.5-million carats last year, 22% more than 2016.

These developments have refocused attention on an important mining sector that is often overshadowed by gold and platinum miners. This may be due to the tight control and ownership that has characterised the diamond industry in the region, but recent developments might change that.

In Angola, where the industry is overseen by the state-owned Endiama, dramatic changes are afoot that could open up the doors for more foreign investment. Recentlyelected President João Lourenço called last November for the company to devise policies to attract investors and foreign multinationals into the Angolan market. This call to action follows the president also replacing the entire Endiama board in sweeping changes he has wrought since being elected to power last August. Despite being former president José Eduardo Dos Santos’s anointed successor, he wasted no time in cleaning up and removing Dos Santos appointees from key positions.

The cleaning up and call to open for investment are sure to spur interest from the country’s existing and new partners. One of the most significant of these partnerships is with Russia’s Alrosa. The firms announced a joint venture in May last year to develop the Luaxe kimberlite deposit that is estimated to be worth more than $35bn.

In mid-January, the Russian company announced that had agreed to increase its stake in the Catoca Mine for $70m, bringing its shareholding to 41%.

Another country that may attract closer scrutiny in the near future is Zimbabwe, where its mines and mining development minister said it would resume selling its diamonds this month.