ANGOLA Law and Practice Contributed by: João Afonso Fialho, Marizeth Vicente and Lukeny Pascoal, VdA
In addition to the above, bilateral co-operation treaties for the mining sector have been entered into with Cuba, the Democratic Republic of the Congo, Mozambique, Portugal, South Africa, Russia and the United States of America. Additionally, in 2024, Angola approved for rati - fication the Protocol on Mining in the Southern African Development Community (SADC). 5.4 Sources of Finance for Exploration, Development and Mining Holders of mineral rights (or relevant share - holders) generally fund their mining activities in Angola with private equity, shareholders’ loans or direct loans from foreign banks. The imple - mentation of alternative funding mechanisms (streaming and royalty agreements) is still signifi - cantly impaired by the existing foreign exchange and marketing regulations. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Angola’s securities market is finally ramping up with significant operations successfully com - pleted in 2023. Nevertheless, investors usually raise funds overseas through private equity or in international security markets to invest in mineral exploration and mining projects. 5.6 Security over Mining Tenements and Related Assets Mineral rights may only be pledged to secure credits contracted by the holder of mineral rights to finance mineral activities covered by a mineral investment contract or exploration/mining title. For this reason, the pledgee must be provided with an authentic copy of the title and the min - eral investment contract.
In pledging its mineral rights, the holder of min - eral rights shall forfeit neither the possession nor the exercise of the mineral rights pledged, being likewise bound to comply with all legal and con - tractual obligations. The mineral rights pledged shall not be transferred by the relevant holder, nor encumbered again, without the prior express authorisation of the pledgee. Enforcement of the pledge (transfer of the min - eral rights in the event of default) is subject to government approval. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Angola is committed to implementing a diver - sification strategy aimed at reducing the coun - try’s dependence on oil, while developing gas and renewable energy, building on its current strength in diamond production and exploring the country’s rare earth and other energy transi - tion minerals’ potential. As an example, a new foreign exchange regime applicable to the min - ing sector was enacted in 2023, inter alia allow - ing external investing entities – in which Angolan SPVs are included – to open and operate bank accounts abroad, including escrow accounts, without previous authorisation from the Angolan National Bank. The creation of a Diamond Burse is also expected to take place soon, determin - ing significant changes to the current diamond marketing regime. The political stability resulting from the re-elec - tion of the president in August 2022, the increas - ing demand for minerals in the international mar - ket for energy transition and De Beers, Anglo American, Rio Tinto and Pensana Rare Earth Metals’ recent investments in the country are all
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