The main part of the state income received from the mining sector of Angola falls on oil and gas, numerous deposits of which are associated with sediments of coastal-marine depressions. The next most important are diamond deposits. Ore minerals include significant deposits of iron ores associated with ferruginous quartzites, as well as small deposits of gold, copper and manganese.
Several years ago, Angola began to move towards diversifying its extractive industry in order to move away from excessive reliance on diamonds and oil. Angola, which was the fourth largest producer of diamonds in the world, has yet to understand the full potential of its minerals.
If you intend to start a mining company in Angola, then you will not go wrong, as this country has yet to be explored by geologists and the current mining activities represent a partial potential of Angola in this regard.
Obtaining a mining license in Angola
Typically, a permit for mining in Angola can be obtained through an open tender. Mining concessions are awarded on a first come, first served basis, provided that applicants have the necessary financial and technical expertise in mining and quarrying.
Licensees receive the following legal guarantees:
- unrestricted mining in Angola during exploration;
- the exclusive right to the extraction of minerals and is transferable;
- state support for mining and respect for the rights inherent in it;
- to freely dispose and sell minerals.
Entrepreneurs who have already obtained a mining permit in Angola also have the right to:
- obtain geological / mineral information from the competent supervisory authorities that is available for the area subject to the concession, or consult with such authorities regarding such information. It would also be appropriate to consult a specialist on the issue of obtaining a mining license in Angola;
- interaction of administrative authorities to carry out field work and establish the right to access;
- use existing surface and groundwater that is not used or covered by any other mining firms;
- build and deploy the infrastructure and facilities required to carry out geological works;
- use the land allocated for the implementation of mining facilities, buildings and equipment;
- change the natural configuration of areas subject to concession;
- conduct geological / mining activities in Angola required to fulfill the approved work plans, without any other restrictions other than those arising from legal standards, concession agreement;
- extract minerals in Angola;
- sell the mined minerals;
- receive compensation for losses that may be incurred as a result of any actions restricting the exercise of rights to the extraction of minerals.
The license for oil/gas production in Angola is valid for three years.
Any company wishing to carry out oil operations in Angola, can only do so in conjunction with the National Concessionaire.
Angola's domestic policy aims to protect the domestic market for mining products and services. There are certain restrictions on the registration or acquisition of a company in Angola by foreign investors.
The policy is aimed at reasonable protectionism of the local population in relation to mining business. Companies must fulfill the following obligations:
- Maintain a workforce ratio of 30% foreign workers to 70% local workers;
- Purchase certain products and services exclusively from Angolan companies.
Mineral extraction taxes in Angola
All local and foreign mining organizations in Angola are subject to a special tax regime described in the Mining Code. They may be subject to the following taxes:
- income tax, royalties;
- land tax;
- tax on artisanal production.
The provisions regarding customs duties provide for certain exemptions, in particular for equipment used in connection with the extraction of mineral resources, and the conditions that apply to such exemptions. Mining products can be exported directly or indirectly by the copyright holder without any additional customs duties.
Legal professionals at IQ Decision UK provide comprehensive legal assistance to clients intending to open a mining company in Angola.