BLANTYRE (Mineweb.com) --Angola, which this year has raked in a total of US$892.7 million from its diamond production – well up from its diamond earnings of around US$650 million in the recent past, could be on course to become the world’s number one producer of the precious stone, predicts the Bretton Wood institution of The World Bank.

The World Bank report unveiled in the Angolan capital of Luanda predicts that the country’s economy will record in the next twenty years, a production boost in the diamond sector that can turn the country into the world’s biggest producer.

Quoting from a research document called Angola Economic Memorandum – Crude Oil, Wide growth and Equity - the country’s official news agency Angola Press renders credence to the WB predictions saying diamond reserves in the country as of 2000 were estimated at 40 million carats in alluvial deposits and 50 million carats in Kimberlitic reserves, that only now are being explored.

The World Bank report focuses on four main aspects of the index of socio-economic realities, the existing options for consequences, the main constraints to the diversification of the economy outside the sector of minerals and lastly the challenges and opportunities to increase the well-being of the people.

The document, which emphasizes the need to conclude the transition to a market economy also outlines some options in terms of policies ranging from a moderate to a radical reform, aiming at guiding the officials in charge of making policies, as well as touching on what should be the order of priorities.

Angola’s national diamond company Empresa Nacional de Diamantes de Angola (Endiama) announced early this year that it expects to double production from its current capacity of about six million carats of diamonds per year. Once Endiama reaches this output level, it will surpass South Africa and will become Africa’s third largest diamond producer After Botswana and Democratic Republic of Congo (DRC).

To achieve this feat, Endiama started a new exploration and production arm (Endiama – EP) and plans new production from six diamond projects. The Endiama-EP’s first project was in Camanjanja area of the Lunda-Norte province where it was tasked to mine diamonds independent of any other company - the first time that the company would operate independently. This was a government policy to maximize diamond mining.

In addition to operating new mines, Endiama also tasked itself with the building of a new diamond cutting plant and improve local infrastructure in areas where it is operating. All this meant to maximize revenue.

From 12 million carats per year, Angola want to reach 13 million carats in the very near future which will translate into US$2.2billion according to the current market price of diamonds. If Angola reaches this target, then it will surpass Canada, making its step towards the world No. 1 producer one even steadier.

However despite all this good news about Angola’s diamond prospects, the industry is still dogged by blood. While diamond output was reputed to have fuelled the country’s civil war, the industry, despite government claims to have cleaned it following guidelines by the international Kimberley Process, actually still has some matters to clear up according to media and human rights reports.

A report by Rafael Marques, a journalist-cum-civil rights campaigner says the national diamond industry still is beset by “murders, beatings, arbitrary detentions and other human rights violations. The Marques report calls upon the international community to shun Angolan diamonds because the country was entrenched with “systematic violations of human rights, thus making them conflict diamonds.”

In addition to this blemish in the industry, smuggling was reported to be gnawing on government coffers. Reports indicate that the Angolan government is losing around US$375 million in revenue every year because of diamond smuggling.