There is significant growth and transformation in Angola’s mining industry, driven by strategic reforms, infrastructure development and an increase in foreign investment, attendees of the Investing in Africa webinar series, hosted by law firm ENS, heard on June 25.

The webinar, titled ‘Digging into Growth: New Frontiers in Angola’s Mining Industry’, was moderated by ENS natural resources and environment head Ntsiki Adonisi, while speakers included Portugal-based law firm PLMJ Colab partner Renata Valenti and PLMJ Colab senior counsels Oscar Azevedo and Rúben Brigolas.

Angola is actively pursuing diversification beyond diamonds, focusing on critical minerals that are required for the global energy transition, the speakers agreed.

While diamonds remain a key resource, Valenti noted that Angola continues to diversify its mining industry into exploring and investing in key critical minerals such as lithium, cobalt, copper and rare earth elements.

The country also has an abundance of reserves in gold, iron-ore and phosphates, making it an increasingly attractive proposition for global investors, she said.

Angola’s government has made economic diversification a priority, with Valenti adding that the country is also starting to welcome the increased participation of the private sector, especially pertaining to the acquisition of mining concessions in the country.

“There is an ongoing mapping of the geological potential of Angolan mining. So far, Angola has found at least 36 of the 51 critical minerals that are within the industry’s mixed energy strategy,” stated Azevedo.

This will tie in well with exploration projects that focus on the global energy transition, he added.

Key Initiatives

The establishment of a dedicated regulatory agency – separate from the national concessionaire – to combat illegal mining is a key factor in ensuring that Angola’s mining compliance and regulatory framework are in accordance with international standards, Azevedo stated.

Regarding infrastructure development, the Lobito Corridor – a new rail link focusing on enhancing economic and trade activity among Angola, the Democratic Republic of Congo (DRC) and Zambia – is integral to facilitating the efficient export of critical minerals, particularly from the Copperbelt region, in Central Africa, to international markets through the Port of Lobito, in Angola.

Azevedo added that the corridor aims to unlock significant economic opportunities for the participating countries, especially through the export of critical minerals.

In outlining the current state of play in mining in Angola, Brigolas highlighted that the State retains ownership of mineral resources and can also participate in mining projects through a State-owned company.

As a minimum, the Angolan State can hold a 10% stake in a company that aims to conduct exploration activities; this stake could increase, depending on the quantity of minerals produced.

Brigolas said there are no restrictions based on the nationality or residence of investors in mining projects involving strategic minerals, but when mining rights are granted under equal conditions, preference is given to projects supported by citizens.

“Through regulatory bodies and public companies, the State ensures that mining activities comply with established laws and regulations, thereby guaranteeing the sustainability and development of Angola’s mining industry.

“This role can be enhanced by the creation of new public institutions, where necessary, to manage specific aspects, such as export controls, pricing and public health protection,” he concluded.