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China Demand to Support Angola Diamond Sales, Endiama Says

China’s increasing demand for diamonds is expected to support Angolan diamond exports and prices in 2012, said Antonio Jose Freitas, a spokesman for state-owned diamond company Endiama EP.

“Amid uncertainty in Europe and the U.S., we expect China to continue to support Angolan diamond sales,” Freitas said in a phone interview today from the capital, Luanda. Angola is also “stocking up” on diamonds to support prices, he said.

The southern African country’s diamond production dropped to 8.32 million carats in 2011 from 8.36 million carats in the previous year, according to an e-mailed report from Endiama.

The company’s revenue from diamond sales rose to $1.16 billion from $987 million, bolstered by an 18 percent rise in the average price of the gems to $139.6 per carat from $118.1 per carat, the report showed.

Angola ranks behind Botswana, Russia, Canada and South Africa, as the world’s biggest diamond producer by value, according to De Beers, the world’s largest diamond company.

To contact the reporter on this story: Henrique Almeida in Lisbon at halmeida5@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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