Although there are some reports of diamond exports from Angola by the Portuguese as early as the eighteenth century, modern industrial diamond mining as we know it today began in 1912, when gems were discovered in a stream in
Lunda region in the northeast. In 1917
Diamang was granted the concession for diamond mining and prospecting, which it held until independence. The government obtained control of the company in 1977. A general law on mining activities (Law 5/79) enacted in April 1979 gave the state the exclusive right to prospect for and exploit minerals. Accordingly, a state diamond-mining enterprise, the National Diamond Company (Emprêsa Nacional de Diamantes--
Endiama), was founded in 1981 and acquired the government's 77 percent share in Diamand.
UNITA selected the diamond mining industry as a principal target, and soon crippled mining efforts. The two foreign companies involved in servicing and operating the industry pulled out of Angola by 1986 and mid-1986 Diamang was formally dissolved, leaving large outstanding debts. Attacks by UNITA on mining centers, disruption of transport routes, and widespread theft and smuggling caused diamond sales to fall to US$33 million by 1985 and to an estimated US$15 million in 1986. In late 1986, Roan Selection Trust (RST) International, a subsidiary of the Luxembourg-registered holding company
ITM International, began mining in the
Cafunfo area, along the
Cuango River, the site of Angola's most valuable
alluvial diamond deposits (see fig. 9). Mining had been halted there for more than two years after UNITA attacked the mining camp in February 1984, kidnapping seventy-seven expatriate workers and severely damaging the mining equipment. After the subsequent kidnapping of a British expatriate in November 1986, defense forces in the area were strengthened, allowing the resumption of mining operations. In 1987 production there averaged , and about were produced in the other two mining areas, Andrada and Lucapa. By 1987 diamond production had risen to , compared with less than produced in 1986. The 1987 figure, however, was still not much more than 1985 production and only a little over half of 1980 output (see table 9, Appendix A). ==Environmental impacts of diamond mining==