Can you share with us the major accomplishments and challenges Catoca faced in the last couple of years?

Over the past few years, Catoca encountered several challenges, primarily due to the global economic recession. Fortunately, the impact on our diamond production was not significant. However, it did affect our expansion plans for new concessions and related investments. The difficulties in accessing financial markets, coupled with the pandemic, led to the delay and cancellation of projects such as the Luaxe concession, which was expected to start production in 2020.

The Covid-19 outbreak disrupted 37% of world diamond production. How did Catoca respond to the pandemic in Angola?

Like many others, Catoca was not immune to the effects of the pandemic. We implemented strict safety measures in our offices and operational mines to ensure the well-being of our employees. One notable accomplishment is that we did not lay off any of our workforce during this period and instead embraced remote work. From March to September, the global diamond market experienced stagnation, leading us to implement management strategies to navigate the challenges and mitigate the decline in profits. Our production plans for 2020 had to be reduced by approximately 30%, with only essential investments being maintained. Despite these challenges, we are proud to have fulfilled our obligations to stakeholders, paying taxes to the government, retaining our employees, and even being able to pay dividends to our shareholders.

With the easing of lockdown measures, when do you expect the market to recover?

We are eager to resume operations at full capacity as soon as possible. However, we must consider the lingering consequences of the pandemic. We hope that the development and distribution of a vaccine in the first quarter of 2021 will stabilize the global markets and create opportunities for new modes of interaction.

As Endiama prepares for an IPO, what are Catoca’s plans to align its strategy with the new shareholders?

The transformations occurring within Endiama as it becomes a public company and floats 30% of its shares will undoubtedly impact Sociedade Mineira de Catoca. However, Catoca’s plans are primarily aligned with the decisions made during its general assembly, which are harmonized with Angola’s National Development Plan and our own business consolidation and expansion strategy. While Endiama may have new partners through the IPO, our relationship with Catoca remains with Endiama as a single entity, guided by the statutes of Sociedade Mineira de Catoca and in compliance with the law.

How has the mining sector in Angola become more transparent in the past three years?

Angola has made significant progress in terms of transparency within the mining sector. Efforts have been made to implement new policies related to diamond trading, sector restructuring, tax clarification, and promoting transparency and compliance in commercial transactions. While there is still progress to be made, we are certainly in a much better position than we were three years ago.

How will the announced New Governance Model in the sector benefit the industry?

The implementation of the New Governance Model brings potential benefits to the industry. It involves the correct interpretation of legal instruments, including the Presidential Decree that establishes the National Agency for Mineral Resources. This decree grants the agency the competences of a national concessionaire and reinforces the industrial productive vocation of both Endiama and Ferrangol, the national diamond and iron company, respectively. This model aims to enhance efficiency, transparency, and accountability within the sector.

Do you have a final message for our international readers?

Angola is a country with immense mining potential, and the government is making efforts to streamline bureaucracy and provide incentives to attract investments. While the recent economic challenges affected various sectors, including mining, we are now moving towards stabilization and growth. This presents an opportune moment to invest in Angola. The country is working towards harnessing its wealth potential for the benefit of its citizens and those who invest here.