ANGOLA Law and Practice Contributed by: João Afonso Fialho, Marizeth Vicente and Lukeny Pascoal, VdA
which approves the regulations for semi- industrial mining of diamonds; • Presidential Decree 35/19 of 31 January (as amended by Rectification 11/19, of 8 May 2019), which approves the technical regula - tions for the marketing of rough diamonds; • Presidential Decree 175/18 of 27 July, which approves the new diamonds marketing policy; • Executive Decree 346/17 of 14 July, which sets forth the criteria for delimitation of con - cession areas for exploitation of construction materials; • Joint Executive Decree 316/17 of 27 June, which approves the list of equipment (for use in exploration and mining activities) exempted from customs duties and fees; • Presidential Decree 231/16 of 8 December, which classifies rare metals and rare earth elements as strategic minerals; • Presidential Decree 158/16 of 10 August, which sets forth administrative offences and relevant penalties; and • Order 255/14 of 28 January, of the Ministry of Geology and Mines, on monitoring of posting of bonds and payments of surface fees and royalties under the Mining Code. 1.3 Ownership of Mineral Resources Under the Angolan Constitution, natural resourc - es are the property of the state. The rules for award and exercise of mineral rights are mainly governed under the Mining Code (approved by the Angolan National Assembly) which empha - sises that all the mineral resources found in the soil, subsoil, territorial sea, continental shelf, exclusive economic zone and other areas of the territorial or maritime domain under the juris - diction of the Republic of Angola are originally owned by the state.
Minerals and mining products mined and extracted in accordance with the rules of the Mining Code and ancillary legislation become the property of the holders of the relevant explo - ration and mining titles. 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. Yet, all mineral projects are developed by private enti - ties or individuals under a mineral investment contract and/or licence. The state has the right to participate in mineral projects through: • a state-owned company with a participating interest of at least 10% in the company to be incorporated for the mining phase; and/or • a participation in kind (minerals produced) in proportions to be defined throughout the production cycles, with the state participa - tion 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 pri - vate entities 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 condi - tions for award and exercise of mineral rights. Mineral rights are autonomous and shall be treat - ed as legally separate from other rights, includ - ing 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 con -
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