Wednesday, February 7, 2018

Like Saudi Arabia wanting to diversify out of primarily producing oil, another OPEC nation to diversify by getting into the gold trade

OPEC nation Angola announced on Feb. 6 that they were looking to add a new industry to their nation's productivity by expanding and diversifying into the gold trade.

Angola is currently the second largest oil exporter on the African continent within OPEC, and like with the growing trend for many energy producing countries, diversification into other industries is becoming vital following five or more years of depressed oil prices on the world market.

OPEC member Angola wants to expand its commodity mix into gold and hopes to start producing small quantities of the precious metal next year, its oil and mineral resources minister Diamantino Azevedo told Reuters on Tuesday. 
The minister does not expect OPEC to impose deeper cuts to its member states this year, and told Reuters that Angola would not exceed the OPEC quota in its oil production.
Under the OPEC deal, Angola has to cut its production by 78,000 bpd from October 2016 levels to keep it at 1.673 million bpd or lower. OPEC’s secondary sources pegged Angola’s December production at 1.633 million bpd. 
Commenting on Angola’s plans to expand beyond crude oil and diamonds, minister Azevedo told Reuters: 
“We are just producing diamonds and stuff like marble and granite at the moment. We are expecting to start gold production soon, we expect to have two or three gold mines operating next year but at a small scale.” – Russia Today


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