THE DIAMOND PAGE — SouthernEra joins alluvial miners in Angola

Toronto-based SouthernEra Resources (SUF-T) will begin mining diamonds in Angola following an agreement to participate in several alluvial operations in the African country.

Under an arrangement with Sphere Trading, a South African-based company that has been mining in Angola for more than a year, SouthernEra will acquire an interest in concessions totalling 155,844 ha along a number of major rivers in the Lunda Norte province.

SouthernEra will have a 35% net profits interest in the properties it operates and a 10% net profits interest in the concessions operated by Sphere.

Historically, Angola has produced more than 64 million carats with an average value of US$150 per carat. But a recent civil war, combined with general political strife, has curtailed exploration and encouraged illegal mining of the country’s diamond deposits.

SouthernEra says the government is clearing and deporting illegal miners from large areas and is awarding concessions to foreign and local companies.