Republic of Angola: Governmental Strategy for its Mining Sector
Hosted by Hon Francisco Manuel Monteiro de Queiroz,
Minister of Geology and Mines
Mining On Top: Africa - London Summit
24-26 June 2014 | London
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Republic of Angola: Governmental Strategy for its Mining Sector
1. THE REPUBLIC OF ANGOLA’S
GOVERNMENTAL STRATEGY FOR ITS MINING
SECTOR
1PRESENTATION
2. 1. The Country and the Public Management of Mineral Resources
1.1. History, Geography and Macroeconomic Data
1.2. Public Management of Mineral Resources: Vision, Mission and Values
2. PALANEGO - National Geology Plan
2.1. Studies
2.2. Public Infrastructure supporting PLANAGEO
2.3.1. Railroads, highways and bridges
2.3.2. Mineral Ports
2.3.3. Electrical Energy
2.3.4. Financial System
3. Opportunities for Investment and Partnerships
4. Current Results
5. Partnerships
6. Conclusion
2PRESENTATION
3. 1. THE COUNTRY - History, Geography and Macroeconomic Data
3PRESENTATION
THE
COUNTRY
Republic of Angola, since 1975
Presidential System of Government
Elections every 5 years. The most recent in
2012 and upcoming ones in 2017
Some 20 million inhabitants in 18 provinces;
Area - 1,246,700 Km2 ;
HISTORY OF
MINING
INDUSTRY
Mining (for more than a hundred years);
1912 – setting up of Angola’s first explorations
company – Companhia de Pesquisas Mineiras de
Angola
1975 – Natural Resources property of the Angolan
State: SONANGOL, ENDIAMA and FERRANGOL
2014. PLANAGEO. Mining diversification;
CATOCA - fourth largest diamond mine operation
Worldwide
Angola’s Rating: BB
(Standard & Poor’s
2013):
WB Report, May -
2013: - Third largest
nominal GDP in Sub-
Saharan Africa: 125
billion USD
– Third largest GDP per
capita : 6,070 USD:
–Largest growth in GDP:
average of 9.1%:
–Growth of non-oil and
gas sector : 9.5%
4. 1.1 MINISTRY OF GEOLOGY AND MINES - Services
4PRESENTATION
The Ministry of Geology and Mines, as the State’s Central Administrative body, ensures the
execution of national policies defined by the Executive in the domain of geological and mining
activities in Angola.
CENTRAL SERVICES
National Department of Mines.
(present)
National Department for Mining
Licenses and Registration;
National Department of Geology;
INSTITUTES AND COMPANIES OVERSEEN BY STATE
Public institutes:
GEOLOGICAL INSTITUTE OF ANGOLA (present);
NATIONAL AGENCY FOR REGULATION OF GOLD
MARKET
Companies subject to oversight:
ENDIAMA E.P (National Concessionaire);
FERRANGOL (National Concessionaire for
Precious and Base Metals);
GOLD AGENCY (Marketing Gold);
AGROMINAS (Agriculture in mining areas).
5. 1.2 Vision, Mission, Goals and Values in Managing Mineral Resources
5PRESENTATION
Vision, Mission, Values, Goals and Strategic Challenges
•Vision Be one of the largest contributors to GDP:
Be the largest source of jobs (especially for young people).
•Mission Execute the National Development Plan (PND 2012 -2017) as defined by
the Angolan Government successfully.
•Goals
Diversify mining, currently concentrated in oil/gas and diamonds;
Increase tax and fiscal revenues;
improve population’s standard of living (whether by increasing number
of jobs, or by social investment in regions adjacent to mining areas).
•Values Transparency, Loyalty and Rigor
6. 2. PLANAGEO - National Geology Plan
6PRESENTATION
NATIONAL GEOLOGY PLAN –
Goal: to enhance geological knowledge
throughout national territory, by:
Aerogeophysical, aerophotogrammetric,
terrestrial geophysical, geological and
geochemical surveys of the entire country;
Geological, geotechnical and
hydrogeological maps to different scales:
Construction, equipping and operation
for 2 years of 3 geochemistry laboratories
(Luanda, Saurimo and Huila).
Training and qualification of staff;
Operating method: Division of the country
into 3 parts and contracting of 3
companies for the aerogeophysical and
chemical surveys.
Duration: 5 years
Investment: US$ 405,000,000 totally supported
by the Government.
PLANAGEO
The National Geology Plan (Planageo) approved by
Resolution Nº 85/09 of September 24, 2009, which
establishes the reparation of shortcomings of
Angola’s geological and mining information
PLANAGEO is a project whose objective is
to:
1. Increase knowledge of the country’s geological
and mining potential
2. Support Angola’s growth, identifying sources of
resources needed to develop the economy
3. Develop the diversification of the national
economy, currently concentrated on the production
of oil/gas and diamonds
TYPE OF STUDIES
AEROGEOPHYSICAL
Regional (M/R) and local (M/R+TEM/AAG) Flights
7. ... PLANAGEO - National Geology Plan
7PRESENTATION
AEROGEOPHYSICAL
Regional (M/R) and Local
(M/R+TEM/AAG) Flights
8. ... PLANAGEO - National Geology Plan
8PRESENTATION
GEOCHEMICAL
(Stream sediments, panning
etc.)
DISTRIBUTION OF LABORATORIES
ADMINISTRATIVE DIVISION
9. ... PLANAGEO - National Geology Plan
9PRESENTATION
GEOLOGICAL
On different scales (outcrops, channels, trenches)
Key:
CITIC
IMPULSO
COSTA NEGOCIO
MAP: SCALE 1:100 000
10. ... PLANAGEO - National Geology Plan
10PRESENTATION
SPECIFIC
(Geotechnical, mineral resources for construction and
metallic minerals)
11. 2.2.1 PLANAGEO – Railroads
11PRESENTATION
RAILROADS
North – Luanda Railroad, Port of Luanda to Malange,
projected for Eastern provinces
Center – Benguela Railroad, Port of Lobito to Luau,
going to DRC and Zambia
South – Mocamedes Railroad, Port of Namibe to
Kuando Kubango
PROJECTED North-South Rail link
English key:
------ PROJECTED NETWORK
######## EXISTING NETWORK
DEPARTURE, ROUTE & ARRIVAL POINTS
JUNCTION WITH OTHER SADC NETWORKS
12. 2.2.2 PLANAGEO - Mineral Ports
12PRESENTATION
MINERAL PORTS
Lobito Mineral Port;
Namibe Mineral Port;
Projected Mineral Port in new
Port of Luanda (Barra do
Dande);
Cabinda Mineral Port Project
13. 2.2.3 PLANAGEO – Electrical Infrastructure
13PRESENTATION
ELECTRICAL ENERGY More than 6,000 MW by 2018 - Med Kwanza:
Lauca, Caculo Cabaça, Alteamento Cambambe, Thermoenergy, Natural
Gas in Soyo,
Others - Lomaun, Gove, Jamba ya Mina, Jamba ya Oma, Keve -
By 2018 the country will produce sufficient electrical energy for all
requirements and to kickstart of industrialization.
14. 2.2.4 PLANAGEO - Communications
14PRESENTATION
COMMUNICATIONS –
Fiber optic telecommunications
throughout the country, Africa,
Europe, America and a soon-to-be
communications satellite
15. 2.2.5 PLANAGEO - Financial System
15PRESENTATION
FINANCIAL SYSTEM – Comfortable liquid
financial reserves, little foreign debt,
external credibility and dynamic banking
system.
Commercial Banks
Multiple Banks
Savings Banks
Credit, Financing &
Investment Systems
Real Estate Loan Companies
FOREX Brokers
Stock Market
BM&F
Investment Banks
Broker/Dealers
Investment Clubs
CBANK SEC
NMC
NFS
16. 2.2.6 PLANAGEO – Roadway Network
16PRESENTATION
ROADWAY NETWORK - The
country is linked by main
secondary and tertiary roads.
17. 3. OPPORTUNITIES
17PRESENTATION
OPPORTUNITIES
Opportunities for the exploration and
mining of:
Diamonds,
Ornamental Stones,
Agri-minerals,
Industrial Minerals,
Minerals for construction,
Base Metals,
Iron,
Manganese,
Gold and copper.
RESULTS
Diversification
of Mineral
Production
Diamonds
Ornamen-
tal Stones
Agri-
minerals
Industrial
Minerals
Minerals
for
Construc-
tionBase
Metals
Steel
Man-
ganese
Gold
Copper
18. 4. Current Results
18PRESENTATION
RESULTS
INDUSTRIAL – A total of 7,923,532.56 carats marketed, worth
957,390,886.48 USD, at an average price of 120,828 USD.
DIAMONDS
MINING
Some results
that involve
Angola’s
mining sector
ORNAMENTAL STONE SUBSECTOR - Ornamental stones (which include marble,
granite and similar stones), overall production reached 32,857.03 m3 (to be
reconciled, because quarries are located in areas without communications -
telephone and internet) and exports, 25,003.07 m3. Sales (on the local market
and exports) amounted to 9,148,117.15 USD.
QUARTZ SUBSECTOR - The export of large-volume samples (3,536 tonnes
marketed), generated a total gross revenue of 85,020,000 Akz. (805,002 USD).
The installed capacity of mines surpasses 70,000 tonnes/year, with existing
stockpiles of quartz estimated at 45,000.
MINERALS FOR CONSTRUCTION (INERTS) SUBSECTOR – This includes Sand,
Burgau, Gravel, Clay and Limestone, reached a total production 4,699,028.28 m3.
OTHER
MINERALS
SMALL-SCALE – Small-scale production counted on six accredited operators
for the purchase of raw diamonds, with 678,884.15 carats having been
marketed, worth 206,473,890.33 USD, at an average price of 304.137 USD/
carat.
19. 5. OPPORTUNITIES FOR INVESTMENT AND PARTNERSHIPS
19PRESENTATION
• Surface Tax – US$
01/km2 in first year;
US$ 07/km2 in second
year; US$ 12/km2 in
third year; US$ 20/km2
in third year and in fifth
year US$ 40/km2;
Tax
Regime
• Income Tax on Mining
Activity – 25%, of which
05% reverts to the local
authority whose
jurisdiction covers the
mine;
Income
Tax
• Royalty 02% – 05% on
value of minerals
produced at minehead
Royalty
TAX REGIME
20. 6. Partnerships
20PRESENTATION
PARTNERSHIPS
The Republic of Angola subscribes, within the scope of mining, to the following vision:
IN RELATION TO AFRICAN COUNTRIES - exchanges of synergies, sharing of investments, knowledge and
technologies, cooperation and involvement in regional and continental initiatives. Mutual assistance in
improving knowledge of mineral resources on the continent with geological-mining research programs
on every scale, in the diversification of geological-mining activity, in the establishment of better
regulations that reinforce values of transparency in processes and legal security, in a greater conjoining
of financing which is applied to the entire mining sector chain (from exploration to beneficiation) and in
sustainability and social responsibility.
IN RELATION TO AMERICA, EUROPE, ASIA AND OCEANIA - change in thinking on Africa, in its
fundamental pillars of Independence, Sovereignty, Trust and Respect; Independence - on the continent,
natural resources belong to the African countries and their citizens, under the same conditions in which,
in Europe, natural resources are also for their states and citizens; Sovereignty - African countries have
the same right to decide freely, and without external conditions, on the mining of their resources; Trust
- Western countries have - above all - to give the benefit of the doubt to African leaders; Respect - for
the cultural and spiritual references, and even the behavioral ones, of Africans.
21. 6. Conclusion
21PRESENTATION
ADVANTAGES OF INVESTING IN
ANGOLA’S MINING SECTOR
•Angola’s vast territory presents
geological characteristics and an
attractive mining potential,
conducive to the discovery of new
mineral deposits;
•The Mining Code offers guarantees
and protection for private
investment;
•Tax and customs regime, of the
most attractive in Africa;
•PLANAGEO will produce geological
information to support the making
of sound investment decisions in
Angola’s mining sector;
•The country has infrastructure
(energy, highways, railroads, ports,
telecommunications, etc.), capable
of meeting the mining industry’s
demands;
•The country offers political,
economic and social stability, a
pleasant climate, peace, tranquility
and hospitality