ANGOLA Law and Practice Contributed by: João Afonso Fialho and Marizeth Vicente, VdA
1.4 Role of the State in Mining Law and Regulations The State is the original owner of mineral resources found in the Angolan territory. Nonetheless, all mineral projects are developed by private entities or individu - als under a mineral investment contract and/or licence. The State has the right to participate in mineral pro - jects through: • a State-owned company with a participating inter - est of at least 10% in the company to be incorpo - rated for the mining phase; and/or • a participation in kind (minerals produced) in pro - portions to be defined throughout the production cycles, with the State’s participation increasing in line with the increase in the Internal Rate of Return (IRR). 1.5 Nature of Mineral Rights Mineral rights are awarded by the State to private enti - ties or individuals by means of a mineral investment contract and/or licence, depending on the industrial/ semi-industrial/artisanal nature of the operations and the type of minerals to be explored. In most cases, a mineral investment contract must be entered into between the State and the investor to define the terms and conditions for awarding and exercise of mineral rights. Mineral rights are autonomous and shall be treated as legally separate from other rights, including the right of ownership of the soil where they are exercised and of the assets existing thereat, and may only be pledged to secure credits contracted by the relevant holder of mineral rights to finance the geological-mineral activi - Mineral rights can be awarded following a public ten - der procedure launched by the ministry responsible for the mining sector or voluntary application. The rel - evant awarding entity will be determined based on the type of mineral and the industrial, semi-industrial or artisanal nature of the mineral operations (Head of the Executive Branch or Minister of Mineral Resources, Petroleum and Gas). ties covered by the concession title. 1.6 Granting of Mineral Rights
Public tender is mandatory when, in light of studies conducted or approved by the body responsible for geology, the area is considered to be of great geologi - cal potential. It is also mandatory for the awarding of mineral rights for strategic minerals. Minerals are clas - sified as “strategic” if warranted by their economic importance, use for strategic purposes, or specific technical mining aspects. The following are deemed as fundamental factors to be weighted by the Execu - tive Branch when classifying a mineral as strategic: • the mineral’s rarity; • relevant impact on economic growth; • high demand on the international market; • significant job creation; • importance for state-of-the-art technology; • positive influence on the balance of payments; or • importance to the military industry. Diamonds, gold and radioactive minerals are express - ly defined as strategic minerals in the Mining Code; rare metals and rare earth elements were also defined as strategic minerals in Presidential Decree 231/16 of 8 December 2016. If no public tender is required, mineral rights shall be awarded on a “first come, first served” basis, provided the applicant has the technical and financial quali - fications required to carry out the mineral activities applied for and commits to observe the environmental requirements established by law. The awarding of mineral rights at an industrial scale is subject to the negotiation of a mineral investment con - tract to be negotiated between the National Agency for Mineral Resources and the investor on a case- by-case basis, with detailed operational, economic and fiscal terms and conditions (from exploration to mining and marketing). Semi-industrial and artisanal projects are awarded by means of simplified applica - tion procedures. The awarding of mineral rights must be published in the Angolan Official Gazette. 1.7 Mining: Security of Tenure Investor Rights Pursuant to the Mining Code, holders of mineral rights have the following statutory rights (among others):
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