Rio Tinto, Angolan state diamond company form joint venture for mine

Rio Tinto Plc and Angola state diamond company Endiama EP formed a joint venture to develop the Chiri project, which is set to become the country’s third-largest producer of the gems, the nation’s mines minister said.

The venture was established last week in Angola’s diamond-rich eastern region, after Rio secured the concession “some time ago” and completed initial exploration that showed promising kimberlite results, Mineral Resources Minister Diamantino Azevedo told reporters in the capital, Luanda, on Monday.

Rio will hold a 75% stake in Sociedade Mineira do Chiri, with the remainder owned by the state through Endiama, Rio country director Canga Xaquivuila said in a text message. No capital expenditure has been allocated yet, he said.

The project is part of Angola’s push to boost diamond output and attract foreign investment as it seeks to raise revenue, even as global gem prices remain under pressure.

(By Candido Mendes)