• Rio Tinto, Angola launch joint venture for Chiri diamond project

• Site could become Angola’s third producing mine, minister says

• Move aligns with plan to boost output despite weak diamond market

Rio Tinto and the Angolan state have formalized the creation of a joint venture to develop the Chiri diamond project, signaling ambitions to make it one of the country's next operating mines.

The venture, named Sociedade Mineira do Chiri (SMC), brings together the Anglo-Australian mining giant and Angolan state-owned diamond company Endiama. The partnership, announced last week, will oversee further exploration work at the project, building on Rio Tinto’s initial exploration work since securing the permit. No investment figures have been announced at this stage.

The move follows what Angola's mines minister, Diamantino Azevedo, described as promising results from the initial exploration campaign that highlighted the site's potential, according to remarks cited by Bloomberg on Monday, April 27. Azevedo said Chiri is expected to become Angola's third diamond-producing site, which he described as a positive development for a sector already on an upward trajectory.

Angola has been targeting higher output volumes in line with that trend, aiming to raise production to 17 million carats by 2027 from 15.2 million in 2025. The push is part of the country's national development plan for 2023-2027, which includes bringing new mining projects into production.

Against that backdrop, partnering with Rio Tinto makes strategic sense. Beyond its standing as one of the world's largest mining companies, the group brings proven expertise in the diamond sector through its legacy assets in Australia and Canada. How that expertise will translate into tangible outcomes for Angola in the coming months remains to be seen, particularly given ongoing weakness in the global diamond market.

The natural diamond industry has come under sustained pressure from the rise of lab-grown stones, which has weighed on both demand and prices in recent years. De Beers reported a 19% drop in its average selling price in the first quarter, pointing to a market that remains under pressure.

Aurel Sèdjro Houenou