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Monday, 25 September, 2000, 17:22 GMT 18:22 UK
Angola to end illegal diamond trade
Woman and child
Little of Angola's mineral wealth reaches the population
By Lara Pawson in Luanda

The days of illicit diamond digging in Angola are due to end.

The government has announced measures to legalise the massive informal sector, which almost equals legitimate production.

The change in policy aims to increase revenue from Angola's diamond resources for the national budget by ending illegal trading.

However members of the diamond industry are cynical about the government's new plan.

Market share

Up to 300,000 illicit diamond prospectors, known locally as garimpeiros, are operating in Angola, the majority based in the north-east Lunda provinces.

Between them, garimpeiros produce around US$300m worth of diamonds a year - almost equal to the value of formal sector production.

Angolan soldiers
The government denies military involvement in illegal mining
In a bid to increase state revenue the Angolan government wants to encourage illicit diggers to sell their stones to the state owned marketing company for diamonds, SODIAM.

Currently many garimpeiros trade in the Democratic Republic of Congo, which shares a notoriously porous border with Angola.

On Monday Angola's vice minister for geology and mines, Carlos Sumbula, announced that garimpeiros have a 45-60 day period to apply for a prospecting licence with the authorities.

The term 'garimpeiro', he said, is going to stop.

Industry dubious

However industry analysts doubt the government's plan will work.

A foreign producer based in Luanda says the majority of garimpeiros are illegal immigrants who will not present themselves to the authorities for fear of being expelled from the country.

Another problem is the price of diamonds.

Uncut and cut diamonds
From raw material to finished product
Garimpeiros cross the border to sell their stones because Angola's 47 buying offices, controlled by Angola's selling corporation Ascorp, have cut prices by up to 30% this year.

Widespread allegations concerning the role of senior army officials in the diamond industry is another problem.

Last week a foreign diamond producer based in Angola said that generals from the national army employ thousands of garimpeiros to prospect illegal concessions.

Mr Sumbula has denied such allegations.

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