An executive of the Angolan state-run diamond trader has said his company and two Chinese partners will build a plant for cutting and polishing diamonds in the northern Angolan province of Lunda Sul, Novo Jornal reports.

The Angolan newspaper quotes the executive, Sociedade de Comercialização de Diamantes de Angola (Sodiam) Executive Director Neves Silva, as saying the Chinese partners are CBRITEC and Perfect Wealth Ltd.

Mr Silva said the estimated cost of the diamond processing plant was US$10 million.

He said the plant would be built in Catoca, where Sodiam has a diamond mine, on five hectares of land where a training centre, a hotel, banks and other public facilities would be built.

The report says the plant will have the capacity to process 4,000 carats of raw diamonds a month to begin with.

Construction work is due to begin by February, and the plant is due to open in August, Novo Jornal says.