Surge in demand from India and China is expected to boost diamond production in Angola this year, according to country's state-owned diamond firm Endiama.
JOHANNES BURG(BullionStreet) : Surge in demand from India and China is expected to boost diamond production in Angola this year, according to country's state-owned diamond firm Endiama.
In a report, Endiama also said the demand will also be drive by a recovering US economy and the long term demand continues to present good prospects of success for Angola.
Endiama figures show that the United States was the main destination of Angolan diamonds from 2006 to 2008, with the price per karat varying between $87 and 154.
Observers said they expect Angola' sdiamond output to hit new records this year after posting revenue growth in 2011 as the global diamond market recovered from a slump caused by the financial crisis.
Angola, world's fifth largest diamond producer, depend heavily on diamonds to lift its economy.
Five countries currently account for more than 80 percent of the value of global production, with Botswana producing 28 percent, Russia 20 percent and Angola about 10 percent.
The Angolan diamond industry has revived in recent months on indications that China's market share will double and that demand from India should grow 10 percent by 2015.
The increase in diamond sales to China is largely due to their use in barter transactions (diamonds in exchange for goods),analysts said.
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