SEAMIC Newsletter Vol. 10

Diamond Mining Kimberlite Pit
Ornamental Stones Projects in Angola
Agro and Industrial Minerals: Phosphate, Potash, Dolomite, Quartz, Gypsum, Sulphur, Salt,
Fluorspar, Kaolin, Limestone, Diatomite, Talc, Feldspar and Bitumen.
Construction materials: Ornamental Stones (Anorthosites, Granite, Marble), limestone, sand,
gravel and clay.
Carbonatite Complexes: Nepheline, Niobium-tantalum, Fluorite, Barite, Rare Earth
Elements.
Iron and Manganese Ores, Pegmatite associated high quality Mica, Mineral Sands, (Titanium
and Zirconium), Mineral and Thermal Water.
LEGISLATIONS AND FISCAL REGIME
The current applicable legislations to mining activities are the following:
♦ The law on geological and mining activities, promulgated as law N. 1/92 of January 1992;
♦ The law on diamonds, promulgated as law n.16/94 of October 1994;
♦ The law on diamond reservation areas law N. 17/94 of October 1994;
♦ Decree on the rules for taxation for the mining industry promulgated as decree N. 4-b/96,
of May 1996;
♦ Decree on customer regime for the mining sector promulgated as decree N. 8-a/96 , of
May 1996;
♦ Decree on the reduction of the size of the diamond concession promulgated as decree N.
7-a/00 of February 2000; and
♦ Decree on the establishment of single marketing channel for diamonds promulgated as
decree N. 7-b/00 of February 2000.
The current fiscal regimes for the mining sector include the following:
♦ Corporate tax set at 35% on net profit;
♦ Royalty rates set at 5% on precious stones and metals, 4% on semiprecious stones, 3% on
metallic minerals and 2% on other minerals;
♦ Surface tax from US$ 1.00 to US$ 4.00 per square kilometre held is paid only during
exploration phase;
♦ Withholding tax on dividends is 15%. Mining equipment and supplies are exempt from
import duties, when not available in the country; and
♦ Depreciation on fixed assets is allowed and exploration costs can be amortized as follows:
50% in year 1; 30% and 20% in following years. Provision has to be made for the
rehabilitation of the mined area.
5