ANGOLA Law and Practice Contributed by: João Afonso Fialho, Marizeth Vicente and Lukeny Pascoal, VdA
rights must relocate, at their expense, any local community that is displaced as a result of min - ing operations, and all traditions and practices of local communities must be considered in the resettlement process. Without prejudice to the above, in planning the mineral activities, the Executive shall provide for effective measures for sustainable economic development and protection of the lawful rights and interests of the local communities, as well as the development of national human resources. 2.5 Impact of Specially Protected Communities on Mining Projects There are no specially protected communities with respect to mining projects under Angolan law. The local content rules found in the Mining Code are aimed at protecting local communities at large and shall apply to all Angolan nationals, entities or populations residing in the concession area (as applicable). 2.6 Community Development Agreement for Mining Projects Community development agreements for mining projects are not mandatory by law nor are they a common practice in Angola. 2.7 Environmental, Social and Governance (ESG) Guidelines and Regulations ESG guidelines and regulations are scattered in different provisions of the Mining Code, ancillary industry-specific legislation and gen - eral laws and regulations. ESG provisions can also be found in mineral investment contracts, which usually include guidelines and principles on environment protection/preservation, human resources and business ethics.
The ESG concerns are made clear by the requirements for holders of mineral rights to conduct mineral activities under strict environ - ment regulations, comply with the applicable local content policies on recruitment and train - ing Angolan nationals, procure local goods and services, ensure the involvement of local com - munities, 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 indus - trial mineral production. Unregulated and clan - destine mining practices not only harm the envi - ronment but also destabilise the economy and undermine the efforts of companies that operate according to established regulations. Disruption Caused by Illegal Mining Economic and environmental impact Illegal mining often involves uncontrolled extrac - tion practices that lead to severe environmen - tal degradation, including deforestation, water pollution, and habitat destruction. These activi - ties 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 sig - nificantly lower prices. This creates unfair com - petition 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
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