WITH CONTROL of Angola's diamond-producing regions now firmly in government hands, the country can now begin to realize the mining industry's full potential as an engine of economic and social development. "The contribution of the mining sector to the country's social and economic development still falls short of its potential," notes Deputy Minister of Geology and Mines António Carlos Sumbula. "Therefore the government has been working to establish a sensible and clear policy aimed at improving and increasing the sector's participation in the development of the country."

Angola is the world's seventh largest diamond producing nation, which accounts for the fact that diamond mining employs some 22,000 Angolans, or 90% of all workers in the mining sector. While production depends on each project, the industry currently mines some four million carats per year, or some US$600 million worth of the mineral. Through stricter fiscal controls on the industry, government revenues from the sector have increased from about US$5 million in recent years to nearly US$70 million in 2000. "The contribution of the diamond-producing sector will increase considerably during the present year," Mr. Sumbula predicts. "The industry will thus contribute towards socio-economic and cultural development in the regions where it is established; lowering the unemployment rate and improving education and training at the local level through the building of new schools and training centers.

The industry also supports other sectors, such as health." Angola has been described as a geological phenomenon. Its diamond- producing areas contain nearly 700 diamond chimneys, or kimberlites, where exploitation has only just begun to take off. "The country also has a diversified geological potential," Mr. Sumbula notes. "And even though our scientific knowledge of the potential is in its infancy, numerous occurrences of various types of mineral resources have already been found." Recent geological studies indicate that the country contains rich deposits of some 39 minerals, including gold, copper, nickel, chrome, carbonate, commercial stone, iron and magnesium.

Angola's mineral wealth has attracted a long list of foreign investors. So far, most of the interest has been concentrated in the diamond sector, where private overseas investors participate in joint projects with the state-owned diamond company Endiama. "But we have seen increased foreign interest in research and exploration projects for other resources," notes Mr. Sumbula. "The government has been taking steps and initiating programs aimed at increasing foreign investment through the revision of laws that make the sector more attractive and competitive," he adds.

Potential investors are encouraged to operate in an environmentally-friendly manner as Angola has passed a series of basic mining laws and monitors exploitation sites. "The concessionaires of mining sites must manage and preserve the natural environment they are exploring and are required to present a study of the environmental impact," Mr. Sumbula stresses. "They must take the necessary measures to reduce the formation and propagation of dust in the exploration areas and surrounding zones, prevent the pollution of water and soils, and avoid actions that could harm human health, fauna and flora and the environment in general. They must also restore the land and landscape after the mining has been completed as foreseen in the environmental impact studies," Mr. Sumbula says.

DIAMONDS: REBEL'S BEST FRIEND NO LONGER

ENE P EPAL DESPITE a United Nations ban on the diamond exports that help keep civil wars alive in Angola, Sierra Leone and the Democratic Republic of Congo, smuggling of the so-called conflict diamonds has continued to finance Africa's most brutal wars.

One of the problems is that legitimate players in the global diamond market have been unable to trace the origin of gems that enter third countries through clandestine channels, where weapons brokers turn a blind eye and a healthy profit. But a measure that was agreed upon in September 2000 in South Africa by ministers from 20 nations and diamond industry representatives promises to take some of the shine off the conflict diamond trade.

The measure calls for governments of diamond-exporting countries to be responsible for enforcing a new international certification scheme that will help identify the war diamonds. It calls for all uncut diamonds to be accompanied by certified documents that declare their origin. The Angolan government, which has made huge military gains against rebels in diamond-producing areas, has gone a step further.

Late last year, Angolan officials unveiled an ambitious plan to curb illicit diamond digging through a campaign that promises the so-called "garimpeiros" of the unofficial mining sector a higher price than the illicit market for their diamonds if they register with local authorities. So far, however, the program has had mixed results as the authorities struggle financially to keep up with the illegal traders, who have been out-bidding what the government can offer.