Angola vies with Nigeria as Africa’s top oil producer. It earned $48.6 billion (£30 billion) from oil exports last year, with about $20 billion of crude exported to China, according to the central bank.The oil-rich republic is one of 12 members of the Organisation of Petroleum Exporting Countries (OPEC). In May the nation’s output averaged 1.6 million barrels to 1.65 million barrels a day, but according to Minister of Petroleum Jose Maria Botelho de Vasconcelos Angola has the capacity to pump 1.9 million barrels a day of crude oil. However before flying to Vienna for an OPEC meeting in June to review the group’s target for oil production he commented, “As a yearly average, it will not be possible.”
In addition, the Minister said earlier this year that Angola expects to start exporting liquid natural gas (
LNG) in the first quarter of 2012. He also pointed out that his Ministry is working on drawing up the legislation to regulate natural gas exploration in Angola.
‘ANGOLA HAS THE CAPACITY TO PUMP 1.9 MILLION BARRELS A DAY OF CRUDE OIL. WE ALSO EXPECT TO START EXPORTING LIQUID NATURAL GAS IN THE FIRST QUARTER OF 2012’
JOSE MARIA BOTELHO DE VASCONCELOS, Minister of Petroleum
‘ANGOLA’S DOORS ARE OPEN AND I THINK THAT THE BRITISH CAN BRING
A LOT; THEY HAVE THE TECHNOLOGY, EXPERTISE AND KNOWLEDGE OF
THE FIELD’
PROF DR MAKENDA AMBROISE, Minister of Geology and Mines
‘JOINT EFFORTS WITH THE PRIVATE SECTOR AND WITH THE CAPABILITIES OF FOREIGN PARTNERS, THE MINING SECTOR WILL SOON BE EQUIVALENT TO THE OIL SECTOR’
JOAQUIM DUARTE DA COSTA DAVID, Minister of Industry
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Angola LNG project, which is expected to produce 5.2 million tons of gas per year, will make use of natural gas for export and feeding the Angolan petrochemical industry, preventing the burning off of the gas at oil rigs.
As the Government shies away from becoming overly dependent on oil for its revenues, the untapped potential in other sectors, such as agriculture and energy, is increasingly catching the attentions of international investors. However it is Angola’s mining sector that is taking off in particular.
Minister of Geology and Mining Joaquim Duarte da Costa David said in February that within 15 to 20 years mining may even reach the level of development of the oil sector, owing to its high potential. He added that with correct legislation, peace and joint efforts with the private sector and the financial and technological capabilities of foreign partners, the mining sector would soon be equivalent to the oil sector.
Today, mining already contributes some 12 per cent of Angola’s GDP, although a disproportionate 98 per cent of this stems from diamonds.
The mining sector’s potential lies, of course, in diamonds – it currently ranks as the fourth largest diamond producing country by value – as well as in a wide variety of other minerals, including precious metals (gold and platinum), base metals (lead, zinc and copper), ferrous metals (iron and manganese), decorative stone (black and red granites, quartz and marble), phosphates, kaolin and raw materials apt for cement production.
Generous reserves of these other minerals and metals have been discovered and are now being targeted for exploitation in line with the national economic diversification strategy.
An exaggerated reliance on the diamond industry is no less dangerous than placing too much stock on oil, as the global crisis proved recently. Between 2008 and 2009, the price of diamonds plummeted, forcing producers to take action. The Ministry of Geology and Mining gathered the industry’s players – producers, investors and buyers – and together identified the challenges and solutions.
“It was the major damage of the crisis,” recalls Prof Dr Makenda Ambroise, Minister of Geology and Mines. “One of the solutions was the reduction of costs. Our priority was also to secure the jobs of the Angolans because in mining areas, there is no alternative form of employment. Therefore all companies were instructed to pursue a policy of reduced costs. We also worked with the companies to define the minimum acceptable price for sale.”
In some cases, the Government stepped in and bought surplus production at an agreed price, storing the diamonds to sell at a later date when the global price recovered. Since the price has already risen to an acceptable level, the Government no longer holds any stocks.
Today, the Ministry is pursuing two major areas that will boost the country’s development. Prof Ambroise says the Government wishes to develop agro-minerals to produce fertilisers and therefore replace imports while, supporting agriculture, agro-farming, forestry and aquaculture. “We also started the production of bitumen and asphalt rocks, crucial for the country’s reconstruction. And there is a strong potential for iron production, manganese, gold and copper,” he adds.
By liberalising its mining regulations and offering favourable investment terms, the Government hopes to lure in more international investors, especially from the UK.
“Angola’s doors are open and I think that the British can bring a lot; they have the technology, expertise and knowledge of the field,” says Prof Ambroise. “They have nothing to lose and should come to Angola and develop genuine projects. I believe we must strengthen bilateral cooperation between the two Governments in terms of training; the UK has very good schools and mining trade training programmes and Angola could benefit greatly.”
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