ANGOLA Law and Practice Contributed by: João Afonso Fialho and Marizeth Vicente, VdA
Reaction of the Government and Mining Companies Enforcement and legislation
ment contracts, which usually include guidelines and principles on environment protection/preservation, human resources and business ethics. ESG concerns are made clear by the requirements for holders of mineral rights to: • conduct mineral activities under strict environment regulations; • comply with the applicable local content policies on recruitment and training of Angolan nationals; • procure local goods and services; • ensure the involvement of local communities; • abide by local laws and regulations; • combat corruption; and • adopt the best business ethics practices. 2.8 Illegal Mining In Angola, illegal mining is a significant issue that has a considerable impact on legal industrial mineral pro - duction. Unregulated and clandestine mining practic - es not only harm the environment but also destabilise the economy and undermine the efforts of companies that operate according to established regulations. Illegal mining often involves uncontrolled extraction practices that lead to severe environmental degrada - tion, including deforestation, water pollution and habi - tat destruction. These activities seriously compromise the sustainability of natural resources and have long- lasting adverse effects. Unfair competition Illegal mining operations typically do not pay taxes or comply with safety and environmental regulations, allowing them to sell minerals at significantly lower prices. This creates unfair competition for legally established companies that adhere to all regulatory standards. Safety risks Illegal mining frequently involves hazardous working conditions and labour exploitation, including child labour, and may be associated with organised criminal networks, putting worker safety and health at consid - erable risk. Disruption Caused by Illegal Mining Economic and environmental impact
The Angolan government has strengthened enforce - ment and the application of rigorous laws, such as Law No 8/24 of July 3rd. This law establishes severe penalties for illegal mining activities, including the fol - lowing. • Prison sentences – penalties range from two to eight years’ imprisonment, depending on the severity of the crime. • Fines – these are established based on fractions of the value specified in Article 111, paragraph 2 of the Mining Code (for example, fines of one sixth, one third or one tenth of the specified value, depending on the specific infraction). • Increased penalties – in specific cases, penalties are increased by one third of the minimum limit for crimes: (a) involving public authorities; (b) impacting State projects; (c) using violence; (d) involving child labour; (e) involving association with criminal organisa - tions; (f) involving fraud; (g) obstructing authorities; (h) causing significant environmental damage; or (i) involving activities in protected areas. Partnerships and collaborative actions Legally operating mining companies often collaborate with government authorities and regulatory bodies to combat illegal mining. These partnerships may include the use of monitoring technologies and reporting of suspicious activities. Corporate social responsibility programmes Many mining companies have invested in corporate social responsibility programmes to educate local communities about the negative impacts of illegal mining, offering sustainable economic alternatives and promoting good environmental practices. Public awareness campaigns Public awareness campaigns are conducted to high - light the dangers and adverse impacts of illegal min -
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