ANGOLA Law and Practice Contributed by: João Afonso Fialho and Marizeth Vicente, VdA
3.3 Sustainable Development Initiatives Related to Mining While Angola has not yet enacted specific climate change legislation applicable to the mining sector, the country has implemented significant sustainable development initiatives. There is a clear constitutional and statutory principle of sustainable exploitation of mineral resources in strict compliance with the rules on safety, economic use of the soil, rights of the local communities and the protection of the environment, to the benefit of the national economy, local commu - nities and future generations; this was publicly rein - forced during the course of 2023. In practice, this commitment has been reinforced through initiatives such as the Saurimo Diamond Development Hub and ESG protocols under the Lobito Corridor (this project, recently modernised and granted under an international concession, incorpo - rates digital traceability and sustainability standards), positioning Angola as a regional hub for responsible mining practices. 3.4 Energy-Transition Minerals As global priorities shift and new technologies such as electric vehicles (EVs), battery storage and green energy take preference, rare earth minerals found in countries such as Angola are expected to play a critical role. The Angolan government is focused on the strategic positioning of the country as one of the major mineral resource-producing countries and a key player in the global energy transition. In 2016, the government classified rare metals and rare earth elements as “strategic minerals” along with diamonds, gold and radioactive minerals. However, apart from such classification, the government has not yet introduced new legislative initiatives to promote investment in energy-transition minerals. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes The mining sector is subject to a special tax regime established in the Mining Code (applicable to all national and foreign investors), as follows.
Industrial Tax (Income Tax on Mineral Activities) The tax rate currently in force is 25%. For the purposes of determining taxable income, the following are among the factors considered as tax deductions, in addition to those provided for in the general tax law: • costs of exploration; • evaluation and reconnaissance; and • contributions to the Mining Development Fund. Royalty (Tax on the Value of Mineral Resources) The tax rates currently in force are as follows: • strategic minerals (including industrial diamonds) and precious metals and stones – 5%; • semi-precious stones – 4%; • metallic minerals, semi-industrial and artisanal diamonds – 3%; and • construction materials of mining origin and other minerals – 2%. Surface Fee (Fee Levied on the Concession Area Awarded, Payable During the Exploration Phase) The surface fee value varies according to the size of the concession area, the type of mineral explored and the exploration year in question, and can range from USD2 to USD40 per square kilometre. These amounts are doubled in the event of an extension of the explo - ration period. Holders of mineral rights are subject to other taxes or charges payable by law in respect of activities that are supplemental or incidental to the activities (eg, employment tax). 4.2 Tax Incentives for Mining Investors and Projects Holders of mineral rights can apply for tax incentives in the form of (industrial tax) deductible costs, investment premiums (uplift), grace periods for the payment of income tax and any other type of tax incentive provided for in the law. The application for tax exemptions is dis - cussed and negotiated during the contractual stage of the investment procedure with the Negotiations Com - mittee (in this case, the Negotiations Committee must have a member from the Ministry of Finance).
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