(Rapaport… August 13, 2003) The government of Angola has ended the monopoly of the state-controlled diamond marketing firm, ASCORP, which until now has had the sole right to market the country’s diamonds. The government made the announcement on August 9, 2003 in its official publication, the Journal De Angola.
State-owned company Sodiam, which has 51 percent control of Israeli diamantaire Lev Leviev’s ASCORP organization, will take over the marketing of gems produced by larger producers in the formal sector, but will do so in partnership with local and foreign companies, creating a semi-open market regulated by the state. ASCORP will probably retain the sole right to buy diamonds produced in the informal sector for a year.
The publication explains that ASCORP, which was created during the Angolan war in order to “allow the use of (Angola’s) resources for the economic and social development of the country, had not met expectations.” It states that producing companies have expressed dissatisfaction in their diamond sales agreement with ASCORP and prefer Sodiam. It also mentions that the mining sector can expect new investments including BHP Billiton, which has “already revealed its intention to invest in Angola.”
The report also mentions the government’s intention to “become the pioneering country in the Kimberly Process to prevent the trade in conflict diamonds which funded armed conflicts.”