Project Overview

Diamond Mining Project in Angola Conclusion: Diamond mining in Angola has been experiencing positive growth due to several measures taken by the government to regulate & improve the industry. Our well organized and experienced team of professionals, with a successful track record of similar projects, will implement the latest mining technologies leading to improved efficiency, production and low environmental impact. Long standing stable political environment, favorable business policies and the demand for Angolan diamonds in the world market, the project is set to generate substantial returns.

Executive Summary

EXECUTIVE SUMMARY FOR A DIAMOND MINING PROJECT IN ANGOLA THE KWANGO TEMBO CONCESSION PRESENTED BY RAM MINING AND ASSOCIATES Introduction: The purpose of this business plan is to present a diamond mining project that will leverage Angola's rich diamond reserves to create a profitable and sustainable business. After considering various diamond concessions offered to RAM Mining in Angola, we have decided to introduce this concession to an investor. The Kwango Tembo Diamond Concession. The proposed diamond mining project will involve the mining, and sale of rough diamonds. Our primary target market will be high-end jewellery manufacturers and wholesalers who demand high-quality diamonds to create luxury jewellery pieces for their clients. The project's initial phase will involve the development of several diamond deposits that have been identified in the Malanje/Lundo Norte provinces of Angola. We will use advanced equipment and trusted technology to mine and process the rough diamonds. The overall goal of this diamond mining project is to create a profitable business that supports Angola's diamond industry while contributing to the country's economic growth. Through responsible mining practices, we aim to create a sustainable and socially responsible business that benefits everyone involved, from our investors to the local communities in which we operate. Through this business plan, we are seeking funding to finance the development, mining, and processing of diamonds in Angola. With our team's expertise, responsible mining practices, and access to Angola's diamond reserves, we are confident that this project will be successful and profitable for years to come. The diamond industry is a crucial part of Angola's economy, and it has the potential to become a major player in the global market. With ongoing efforts to attract more investment, it is expected that the diamond industry in Angola will continue to grow and contribute significantly to the country's economic development. Diamonds have been the backbone of the mining industry in Angola, accounting for more than 98% of the country's mineral exports. Angola is currently the world's sixth-largest producer of diamonds, with an estimated production of 9.2 million carats in 2023. Market Analysis: Production volume of diamonds worldwide in 2021, by country (In million carats) Angola, the sixth-largest producer of diamonds, with an output of 9 205 000 carats in 2022, up by 5.5% on 2021. Angola’s diamond exports are expected to grow at a CAGR of 0.62% between 2022, to 9 338 000 carats by 2026. The expected sales of rough diamonds from Angola in 2023, is $1.78 (USD Billion) Mining Operations: Mineral Processing-RAM plans to mine the alluvial mineral deposits in the proposed area to feed the washing plant with the capacity of 300 tons per hour (tph) The plant will be imported from South Africa. Diamonds will be extracted by using the density separation process. IE, rotary pans. Double 16 foot pans Treatment Plant Overview & Process Plant Description-Water will be one of the most important elements on the mining site, as no chemicals are incorporated in the extraction process. Water will be mainly used to condition, wash and separate the heavy diamond bearing material from the rest of the ROM. Site Development and Infrastructure A site plan will be prepared for the project so that infrastructural development could be carried out in an orderly manner to avoid congestion. ● Construction of filtration dams or settling ponds for water recycling ● Defining areas with high population of good diamond grades as core centres on which the construction of open pits will be based ● Construction of a network of in-roads from the open pits to the washing plant and from the staff quarters to the central offices. Power Supply Requirements-The electrical power supply for the mining operations will be obtained from generators. The main consumer of electric power at the mine site will be the washing/treatment plant. Other power outlets will be accommodation and offices, stores, quarry and fresh water pump stations. Sewerage -Toilets and washrooms will be constructed at the mine site. Plumbing works will be done to ensure efficient discharge of sewage from the washrooms to the manholes leading to well-placed septic tanks. Communications -The company will therefore rely on the use of mobile phones and two-way radios on the mine site. Modems of the various mobile phone companies will also be used for internet connections. Accommodation/Offices/Storage/Messing facilities-The Company plans to make use of the shipping containers purchased to ship the equipment/spares etc. to the site, in order to provide accommodation, offices, stores, kitchen and dining space. Additional units will be purchased to cater for the short fall. Security=The security of the mining operations will be ensured through putting in place adequate measures. A security company with experienced personnel will be engaged to oversee the security arrangements of the mining activities and the concession area. Roads-The Company plans to construct a network of roads on the mine site for the haulage of ore from the open pits to the processing plant and access roads Environmental Plan: RAM Mining will be obliged to create, (1) a legal reserve in an amount of 5 percent of the capital invested in the relevant project for mine closure and environmental restoration, and (2) a provision to cover the cost of environmental restoration or reclamation, as a result of damage caused by geological and mineral activities and the useful life of mining (the relevant rates and limit of the provision will be set in accordance with the EIA). These funds are included in the financial projections to cover the costs of rehabilitating the mine site once the mine has reached the end of its useful life. Marketing and Sales: Producers are statutory entitled to sell, directly or indirectly, their production in the national or international market – through the Single Marketing Channel – subject to the following marketing quotas: (1) up to 60 per cent to buyers elected pursuant to the technical regulations, (2) from 15 percent to 20 per cent to SODIAM, EP and (3) up to 20 per cent to local cutting and polishing industry. Socio Economic Development: Training Programme - A training programme will be provided by the company to ensure that unskilled or under-skilled local Angola citizens can gain the relevant skills to fully benefit from the project employment opportunities. Humanitarian efforts - Access to potable water and sanitation in the rural areas of Angola remains a challenge, RAM Mining aims to drill boreholes and supply clean drinking water, in addition to eventually constructing septic tanks, to alleviate the spread of diseases such as typhoid, cholera and the like. Management and Personnel: RAM Mining has management and production staff in place with over 60 years of combined experience in the production, processing and recovery of alluvial diamonds, the majority of this experience being executed in African countries. Financial Projections: The project requires an investment of $8 550 000. Revenue income starts in month 8. Net monthly revenue once the project is in full production = $ 1 226 725. Total Investment paid off in month 16. Cash position after 24 months - $ 6 318 963. Risk Analysis: Assessment of potential risks and challenges the business may face, including political instability and market volatility The Angolan government has taken several steps to promote investment by international companies in diamond mining, including far-reaching reforms to diversify its economy away from a heavy reliance on oil and gas.The Ministry of Mineral Resources and Petroleum has announced plans to introduce tax incentives for diamond investors in Angola. Conclusion: Diamond mining in Angola has been experiencing a positive state due to several measures taken by the government to regulate and improve the industry.The project has a well-organized and experienced team of professionals who have successfully executed similar projects in the past. The team is able to implement the latest mining technologies which will lead to improved efficiency and increased production. With the support of a long standing stable political environment, favorable business policies, and the demand for Angolan diamonds in the world market, the project is set to generate substantial returns for an investor.

Funds Required