Angola Critical Minerals
Market Overview
Angola is rich in several mineral resources including manganese, copper, gold, phosphates, granite, marble, uranium, quartz, lead, zinc, wolfram, tin, fluorite, sulfur, feldspar, kaolin, mica, asphalt, gypsum, and talc. Mining activity in Angola represents significant economic potential as the country holds one of the largest and most diversified mining resources in Africa. Angola is the third largest producer of diamonds, which is explored today at approximately 40 percent. Diamonds are mainly found in Lunda Sul, Lunda Norte, Malange, and Bie provinces and include the presence of Angolan, Australian, British, South African, U.S., Brazilian, Australian, Russian and Israeli companies.
New Governance Model for Mining
Endiama was the state-run national diamond company of Angola. Endiama acted as an exclusive concessionaire in managing the value chain of the diamond subsector and performed operator functions (i.e., prospecting, mining, sorting, and marketing) rough diamonds in Angola. Now, Endiama only retains operational and business-management functions. In the new governance model, Endiama is a publicly owned company.
Under the new governance model, the concessionaire activity and responsibility moved from Endiama to the newly created National Mineral Resources Agency (Portuguese acronym is ANRM, which was created in 2020 under presidential decree 161/20. The ANRM is also responsible for the regulation, promotion, and monitoring of prospecting, mining, trading, and export of minerals and mineral products. The ANRM is involved in investment promotion, regulation, certification of minerals, and oversight including the execution of public and private mining contracts. This change is aimed to decrease the presence of the Angolan government in the mining sector, and to separate administrative, regulation, and inspection tasks and activities from the commercial, trade, and investment objectives in the mineral sector.
Focus on International Partnerships and Investment
In early 2022, the Angolan government announced the completion of its long-delayed National Geology Plan (PLANAGEO), a seven-year geological survey the Angolan government viewed as a resource to incentivize investment in the mining sector. PLANAGEO was a large-scale scientific survey of the mineral and geological potential in Angola to attract international investment.
Companies like DeBeers, Ashton Mining, BHP Billiton, and Rio Tinto operate in Angola under a JV structure with a specific project name. Usually, the joint venture structure consists of the foreign company being the main investor for production and finance; the government entity (i.e., Endiama or ANRM) as the guarantee – operating as the controller, regulator, and setting the law; and local or foreign companies involved in a supportive capacity controlling logistics, HR, transportation, and travel.
As aforementioned, the Angolan government is trying to attract investors in this sector and are trying to court U.S. companies like Newmont Mining Corp, Compass Mineral international Inc., Coeur Mining, Freeport-McMoran, and Bariteworld to come to Angola and explore business opportunities.
Opportunities:
The diamond sub-sector is by far the most developed industry in the sector, being one of the main contributors to Angola’s annual budget. However, there are challenges throughout the critical minerals sector due to lack of developed infrastructure to support the industry. There are many opportunities for U.S. companies as customers, dealers, suppliers, and distributors of mining goods and services, such as:
- Equipment and machinery
- Spare parts
- Training
- Specialized manpower
- Research and development
For more information about the key opportunities in the mining sector, information about companies currently operating in Angola, and to design your market-entry strategy, contact Commercial Specialist, Manuel Cafala at Manuel.Cafala@trade.gov.