Luanda, Angola — MININGREVIEW.COM — 26 February, 2008 – The Government of Angola has approved a contract of association between three local companies – Endiama, Rosa and Pétalas – and Australian-based diamond exploration and development company Nare Diamonds for the exploration, research and development of diamond deposits in the Lulo area of the Capenda Camulemba district, in the eastern Lunda Norte province of the country.
This development has just been revealed here by the Angolan News Agency ANGOP and reported by allAfrica.com. Endiama will hold 32% of the venture, Nare 40% and Rosa and Pétalas 28%.
Project Lulo will involve exploration across a 3 000 sq km area. Operations will start with a phase of mobilisation and implantation of required means, goods and equipment, namely the purchase, import, assembly and installation of technical and social infrastructure for the project.
Angolan government company Endiama will be obliged to supply geological and mining data that the association considers useful. This data will have to be approved and endorsed by an independent party.
Nare will bear the total costs for exploration, research and recognition operations. The company will be expected to spend US$2 million (R15 million) in the first year, plus another US$3 million (R22.5 million) in the second year.
The Australian company will also assume the responsibility for the management and administration of operations.
In turn, Rosa and Pétalas will be expected to promote the creation of good working relations between the association and the various public entities involved, leading to a stable and secure operational environment.
Nare will be reimbursed for its investment, in the fulfilment of the contract, through incomes from the exploration stage of diamond fields that will be discovered.