The Mining Sector Governance Model, which aims at a paradigm shift in the country's geological and mining sector to create a robust and stable regulatory environment, was approved this Tuesday by presidential decree.
The document highlights that there is an excessive burden on national concessionaires with administrative tasks and activities of concession and supervision, which has made it difficult for them to concentrate on their business object and consequently on their consolidation as mining companies proper.
"There is an urgent need to establish the new Model of Governance of the Mining Sector, by reducing the direct presence of the State in mining economic activity, optimising the role of private agents, the concentration of the Ministry of Mineral Resources, Oil and Gas in the functions of strategic guidance, focusing public companies on their corporate purpose", reads the Presidential Decree no. 143/20.
Following the President of the Republic, the Ministry of Mineral Resources, Oil and Gas follows in the new Model of Governance of the Mining Sector, which among various functions is the coordinator, supervisor, controller and controller of the activities of the sector.
The Ministry of Finance, one of the institutions of the Mining Sector Governance Model, has the organic responsibility of, in the specialty, exercising the superintendence on the patrimonial and tributary components of the activities related to the mining sector.
In the new model, the Ministry of Finance is also responsible for supervising and monitoring the fiscal framework of the sector, auditing the accounts, where applicable, as well as the collection of taxes and other fiscal revenues resulting from mining activities.
The National Agency for Mineral Resources will ensure the planning, preparation and launch of mining concessions for the free market, negotiate and manage contracts, representing the interests of the State, monitor the execution of contracts, the quality and content of minerals in Angola, as well as perform public certification and contrast functions.
ENDIAMA, formerly the concessionaire of the sector, now focuses on the activities of its corporate purpose, i.e. diamond mining operator, while SODIAM-EP maintains the function of diamond trading and ensures the optimization of the implementation of the new policy for the sale of this mineral, among other functions, the operation of the Diamond Exchange, the entity formed between the two companies in charge of ensuring diamond transactions in Angola, supervised by SODIAM-EP.
Also in the chain of institutions is the National Commission of the Kimberley Process, an administrative service, foreseen in the respective convention, and which, within the scope of the New Model of Governance of the Mining Sector, continues to perform the certification functions legally foreseen in its specific statute.