Fucauma diamond mine
Encyclopedia
The Fucauma Diamond Mine is a diamond
mine
under construction in the Lunda Norte Province of Angola
. The mine is owned by a consortium of diamond mining companies, the two largest holders being Endiama
with 40 percent ownership and Trans Hex with 35 % ownership.
A feasibility study was done, which included the second phase of bulk sampling and drilling
was completed in February 2004. The result of the study was a plan for a US$15 million capital expansion programme, that would lead to a full-scale mining production capacity of 750 000 m3/year that is anticipated to yield 120 120000 carats (24 kg) in the first year of full-scale mining.
Pilot production was underway early in 2005 with full-scale mining expected to begin six months later. The Fucauma mine is expected to produce approximately 480000 carats (96,000 g) over a four-year period, providing earnings of US$70 million.
Mining operations were suspended in May 2009 due to a decline in diamond demand caused by the late-2000s financial crisis
. Trans Hex announced in August 2011 that it planned to withdraw from its two Angola joint-ventures with Endiama—Fucauma and Luarica
—after failing to reach an agreement with the government of Angola (which owns the other major partner, Endiama). Endiama stated that it planned to restart operations alone.
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
mine
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
under construction in the Lunda Norte Province of Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
. The mine is owned by a consortium of diamond mining companies, the two largest holders being Endiama
Endiama
Endiama is the national diamond company of Angola and it is the exclusive concessionary of mining rights in the domain of diamonds. Angola's state-run diamond company Endiama produced 8.55 million carats of diamonds in 2010. Antonio Carlos Sumbula is the president of the corporation...
with 40 percent ownership and Trans Hex with 35 % ownership.
A feasibility study was done, which included the second phase of bulk sampling and drilling
Drilling
Drilling is a cutting process that uses a drill bit to cut or enlarge a hole in solid materials. The drill bit is a multipoint, end cutting tool...
was completed in February 2004. The result of the study was a plan for a US$15 million capital expansion programme, that would lead to a full-scale mining production capacity of 750 000 m3/year that is anticipated to yield 120 120000 carats (24 kg) in the first year of full-scale mining.
Pilot production was underway early in 2005 with full-scale mining expected to begin six months later. The Fucauma mine is expected to produce approximately 480000 carats (96,000 g) over a four-year period, providing earnings of US$70 million.
Mining operations were suspended in May 2009 due to a decline in diamond demand caused by the late-2000s financial crisis
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...
. Trans Hex announced in August 2011 that it planned to withdraw from its two Angola joint-ventures with Endiama—Fucauma and Luarica
Luarica diamond mine
The Luarica diamond mine is a diamond mine located in Angola. The mine is owned by a consortium of diamond mining companies, the two largest holders being Endiama with 38 percent ownership and Trans Hex with 32 percent ownership....
—after failing to reach an agreement with the government of Angola (which owns the other major partner, Endiama). Endiama stated that it planned to restart operations alone.