Angola’s new mining code aims to increase control of companies

23 November 2010

Luanda, Angola, 23 Nov – Expenditure by mining companies in Angola may have a legally set limit in order to exercise a greater level of control, Angola’s Minister for Geology and Mining said Friday in Luanda.

As well as this said Joaquim David, the companies will be required to invest more in social activities in the regions in which they operate.

In a speech made last Friday at the National Assembly, during the appreciation of the State Budget for 2011, David said that the aim was to limit the cost of investments in mining via the Mining Code, a document which is now being prepared.

“With a legally established investment limit it will be possible to demand social participation by the companies,” said David in response to questions from members of parliament about the poor contribution of mining sector investors in the locations in which they operate.

According to the minister, even the tax contributions from the companies, mainly those in the diamond sector, is insignificant because the investors claim to have exorbitant expenses that often reduce the social contributions and taxes that are payable to the State.

The minister also noted that concession of mining licenses would be stricter and that the privilege would be granted to companies that were better organised and capable of managing the resources. (macauhub)